Cirrus Logic, an Apple supplier, experiences stock drop amid rumors of iPhone 15 changes
The stock of supplier Cirrus Logic (CRUS) hit a three-month low following a report on Wednesday stating that Apple (AAPL) is likely to abandon a highly anticipated feature in its iPhone 15 Pro models.
Due to unresolved technical issues, the iPhone 15 Pro and Pro Max probably won’t feature solid-state buttons, TF International Securities analyst Ming-Chi Kuo wrote in a Medium post. These buttons would have replaced the physical power and volume buttons and instead relied on haptic feedback from users.
TF International Securities analyst Ming-Chi Kuo wrote in a Medium post that the iPhone 15 Pro and Pro Max are unlikely to feature solid-state buttons due to unresolved technical issues. The physical power and volume buttons would have been replaced by these buttons, which would have relied on haptic feedback from users.
Since investors had high expectations that the new solid-state button design would boost suppliers’ revenue and profits, according to the report, Cirrus Logic and AAC Technologies will be particularly impacted by this change.
During morning trading on the stock market today, CRUS shares plummeted by 11.4% to approximately 90.20, while AAC Technologies Holdings (AACAY) saw their shares drop by 14.9% to around 2 in over-the-counter trading. Meanwhile, Apple (AAPL) stocks remained relatively stable with a slight dip of 0.1%, trading near 160.60.
The report suggests that since the iPhone 15 is in the initial phase of development, Apple still has the opportunity to make modifications.
It can be said that Kuo stated that the elimination of solid-state buttons should not have a significant effect on the mass production timeline and shipments of Pro models.
Cirrus Logic’s stock price fell after the report’s release, likely due to the company’s position as Apple’s sole supplier of a crucial component for the solid-state buttons. While AAC Technologies and Luxshare ICT also supply components, Luxshare ICT’s larger operating scale means it will be less impacted by the change, according to Kuo.
The representatives of Cirrus Logic, AAC, and Apple did not respond immediately to requests for comment from Investor’s Business Daily.