diff --git a/src/components/chips/js/chipDirective.js b/src/components/chips/js/chipDirective.js
index 40a69fd80c5..4f28244f28f 100644
--- a/src/components/chips/js/chipDirective.js
+++ b/src/components/chips/js/chipDirective.js
@@ -43,12 +43,13 @@ function MdChip($mdTheming) {
   function compile(element, attr) {
     element.append(DELETE_HINT_TEMPLATE);
     return function postLink(scope, element, attr, ctrl) {
+      element.addClass('md-chip');
+      $mdTheming(element);
+
       if (ctrl) angular.element(element[0].querySelector('.md-chip-content'))
           .on('blur', function () {
-            ctrl.$scope.$apply(function () { ctrl.selectedChip = -1; });
+            ctrl.selectedChip = -1;
           });
-      element.addClass('md-chip');
-      $mdTheming(element);
     };
   }
 }
diff --git a/src/components/chips/js/chipsController.js b/src/components/chips/js/chipsController.js
index f2f3a823eb1..a43bab57885 100644
--- a/src/components/chips/js/chipsController.js
+++ b/src/components/chips/js/chipsController.js
@@ -336,20 +336,22 @@ MdChipsCtrl.prototype.configureUserInput = function(inputElement) {
   inputElement
       .attr({ tabindex: 0 })
       .on('keydown', function(event) { scope.$apply(function() { ctrl.inputKeydown(event); }); })
-      .on('focus', function () { this.$scope.$apply(this.onInputFocus.bind(this)); }.bind(this))
-      .on('blur', function () { this.$scope.$apply(this.onInputBlur.bind(this)); }.bind(this));
+      .on('focus', ctrl.onInputFocus.bind(ctrl) )
+      .on('blur', ctrl.onInputBlur.bind(ctrl) );
 };
 
 MdChipsCtrl.prototype.configureAutocomplete = function(ctrl) {
+
   ctrl.registerSelectedItemWatcher(function (item) {
     if (item) {
       this.appendChip(item);
       this.resetChipBuffer();
     }
   }.bind(this));
+
   this.$element.find('input')
-      .on('focus', function () { this.$scope.$apply(this.onInputFocus.bind(this)); }.bind(this))
-      .on('blur', function () { this.$scope.$apply(this.onInputBlur.bind(this)); }.bind(this));
+      .on('focus',this.onInputFocus.bind(this) )
+      .on('blur', this.onInputBlur.bind(this) );
 };
 
 MdChipsCtrl.prototype.hasFocus = function () {