Cirrus Logic stock plunges 14% as analyst says Apple may change iPhone 15 design
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Cirrus Logic (NASDAQ:CRUS) shares plunged more than 14% in premarket trading on Wednesday as a widely watched analyst said Apple (NASDAQ:AAPL) may remove the solid-state button design on its higher end iPhone 15 models.
TF International Securities analyst Ming-Chi Kuo said Apple (AAPL) is likely to "abandon" the solid-state button designs on both the iPhone 15 Pro and iPhone 15 Pro Max due to "unresolved technical issues" and go back to the traditional physical button design.
"Investors had anticipated that the new solid-state button design would increase suppliersâ revenues and profits; thus, this change is particularly unfavorable for Cirrus Logic (exclusive Controller IC supplier) and AAC Technologies (Taptic Engine supplier)," Kuo wrote in a blog post.
Cirrus Logic (CRUS) did not immediately respond to a request for comment from Seeking Alpha.
Kuo added that the iPhone 15 is still in the engineering validation and testing phase, so there is still time to modify the design, but removing the solid-state buttons and bringing back the physical buttons will make development and testing simpler.
"Based on these factors, removing solid-state buttons should have a limited impact on the mass production schedule and shipments for Pro models," Kuo explained.
Last month, KeyBanc Capital Markets analyst John Vinh said Cirrus Logic (CRUS) could see as much as $7 worth of content in the iPhone 15, up from roughly $5.70 for the iPhone 14.
In February, Cirrus Logic (CRUS) reported third-quarter results and an outlook for its fiscal fourth-quarter that both topped expectations.