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

Cirrus Logic

12/04/2023 17:48

(Adds background, details, graphics, updates shares)
       April 12 (Reuters) - Shares of Apple Inc  AAPL.O 
supplier Cirrus Logic Inc  CRUS.O  tumbled about 12% 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 (EVT) 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 about two years.
    Kuo added that removing solid-state buttons "should have a
limited impact on the mass production schedule and shipments for
Pro models."
    Last week, Wedbush Securities analyst Daniel Ives said in a
note that iPhone demand, particularly in China, has seen a clear
uptick in Apple's second quarter "with a strong month of March,
and is music to the ears of investors."
    Apple and AAC Technologies did not immediately respond to
Reuters' requests for comment. Cirrus Logic declined to comment.
        

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Cirrus hits lowest in over two months    https://tmsnrt.rs/3GDZ7rU
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 (Reporting by Lance Tupper in New York and Akash Sriram in
Bengaluru; Editing by Krishna Chandra Eluri)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on
Twitter;))