Cirrus Logic shares fell 12% on Wednesday as analysts highlighted risks to the Apple supplier’s bottom line from a reported design change to iPhone 15 Pro models to be released later this year.
Ryan Vlastelica for Bloomberg News:
The Austin, Texas-based company derives 88% of its revenue from Apple, according to supply chain data compiled by Bloomberg.
Ming-Chi Kuo, an analyst at TF International Securities Group, wrote that due to unresolved technical issues prior to mass production, high-end iPhone 15 Pro models “will abandon the closely-watched solid-state button design and revert to the traditional physical button design.” This change “is particularly unfavorable for Cirrus Logic” and China-based AAC Technologies, he added.
The view was echoed by Loop Capital, which wrote that the switch would “negatively impact” Cirrus. The firm noted that “changes this late in the game often have residual and unexpected impacts on other components.”
MacDailyNews Take: Bad news for Cirrus, but not for iPhone 15 Pro. As we wrote this morning, “As long as they come with the customizable Action button instead of a mute switch, the iPhone 15 Pro buttons will be perfectly fine.”
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