Apple supplier Cirrus Logic plummets as pricing pressure grows

“Shares of Apple (AAPL) supplier Cirrus Logic (CRUS) slumped 18 percent on Thursday after the chipmaker said in a filing it faces growing pricing pressure in the smartphone market,” Noel Randewich reports for Reuters.

“Apple, under growing pressure from sellers of low-cost Android smartphones, represents about 85 percent of Cirrus’ revenue,” Randewich reports.

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Tiernan Ray reports for Barron’s, “Needham & Co.’s Vernon Essi also weighs in, reiterating a Buy rating, and cutting his price target to $22 from $26, calling today’s revelation ‘another dramatic set-back.’ Essi sees further pressure on Cirrus’s chip prices, and opines that a lower-cost model of Apple’s iPhone, widely rumored for some time, could be partly to blame.”

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  1. WTF are doing these anal-ists!? Watching old porn movies from cable tv all the time?

    “Low cost iPhone” Is the problem!? Not cheaper android plastic toys!?

  2. A company that sells 85% of its sales to cheap android phones is losing money. Must be Apple’s fault???????

    Ahhhhhh. Ok and Apple is Doomed. Doomed I say

    1. As other have pontes out, Apple is Cirrus Logic’s biggest costumer. This why this is happening. They don’t sell most of their chips into cheaper phones. At the investor conference where they spoke about this Cirrus Logic said that when audio becomes just a check box there isn’t much they can contribute and they don’t want that business. They also said that there aren’t many companies making phones that want to differentiate on sound quality like Apple. They didn’t say Apple specifically but we know who they mean. Cirrus Logic provides premium chips for premium sound. Apple is interested oin that. In cheap plastic phones the important thing is just that they make sound at all…

  3. No, he is cutting FROM 26! TO 22!

    Anyway. They said this in conference. I don’t think we need to worry about Apple, or Cirrus Logic. Their margins will come down a bit but they will still be growing.

    And for the love of God let there be NO low cost iPhone!

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