Cirrus Logic Inc. (NASDAQ: CRUS) shares are trading more than 10% lower on Wednesday after a respected tech analyst warned that Apple could abandon some features in its new iPhone 15, therefore impacting suppliers’ demand plans.
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Cirrus Logic is a semiconductor supplier that specializes in analog, mixed-signal, and audio DSP integrated circuits.
Ming-Chi Kuo, an analyst at TF International Securities Group known for his insights about Apple’s Asia-focused supply chain, told clients today that “both high-end iPhone 15 Pro models (Pro & Pro Max) will abandon the closely-watched solid-state button design and revert to the traditional physical button design.”
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Suppliers like Cirrus Logic and AAC Technologies are likely to feel a material negative impact from such a decision by Apple, Kuo said.
Similarly, Loop Capital Markets analysts confirmed such reporting with CRUS seen as “the main supplier” that will be impacted by Apple’s decision.
“Cirrus Logic was expecting “as much as $1.60 gain for the haptic engines which are now no longer in the iPhone 15 Pro and Ultra (Pro Max) designs,” analysts said.
Cirrus Logic has an extremely dependent business model on Apple, with as much as ~88% of its revenue linked to the Cupertino-based giant.
Hence, it comes as no surprise such a sharp move in the CRUS stock today following today’s reports. Overall, CRUS stock trades ~21% higher year-to-date (YTD).
Back in February, the semi-company reported better-than-expected FQ3 results. Earnings per share (EPS) came in at $2.40 on revenue of $590.6 million, beating the average analyst estimate for EPS of $1.99 on sales of $543.97 million.
The December quarter was a record quarter for Cirrus Logic in terms of the revenue generated.
For this quarter, the company guided to revenues of $340-400 million.
At 14:15 GMT, Cirrus Logic stock trades 10.1% lower on the day.
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