Cirrus Logic slumps as analyst says Apple to abandon button design change

Cirrus Logic

12/04/2023 17:22

April 12 (Reuters) - Shares of Apple Inc  AAPL.O 
supplier Cirrus Logic Inc  CRUS.O  tumbled about 13% after a
renowned analyst said the iPhone maker will abandon the
solid-state button design for premium variants of its iPhone 15
series of smartphones.
    Amid speculation Apple would use a button format that
remains static, TF International Securities analyst Ming-Chi
Kuo, known for his accurate predictions related to Apple's
product launches, said in a blog post the company decided to
abandon the design shift.
    "Investors had anticipated that the new solid-state button
design would increase suppliers' revenues and profits," Kuo
said.
    Kuo said the iPhone 15 Pro smartphones were in the
Engineering Validation and Testing stage and Apple had the room
to modify its design, adding the decision was also unfavorable
for another supplier Hong Kong-listed AAC Technologies Holdings
 2018.HK .
    Shares of integrated circuit maker Cirrus Logic have hit
their lowest in over two months and are set for their worst day
in more than two years.
    Apple, Cirrus Logic and AAC Technologies did not immediately
respond to Reuters' requests for comment.
        

 (Reporting by Lance Tupper in New York and Akash Sriram in
Bengaluru; Editing by Krishna Chandra Eluri)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on
Twitter;))