Cirrus Logic Inc shares plunged after an analyst at TF International issued a warning that muddied the outlook for several suppliers of Apple Inc (NASDAQ:AAPL), ahead of the potential September 2023 launch of the company’s next-generation iPhone 15 Pro and iPhone 15 Pro Max models.
"My latest survey indicates that due to unresolved technical issues before mass production, both high-end iPhone 15 Pro models (Pro & Pro Max) will abandon the closely-watched solid-state button design and revert to the traditional physical button design," said TF International analyst Ming-Chi Kuo.
The widely followed Apple analyst noted that the news is "unfavorable" for Cirrus Logic and AAC Technologies, two key suppliers of Taptic Engine-related components for iPhones.
However, Kuo also added that there is still time for Apple to modify the iPhone 15 Pro's design given the device remains in the development stage.
Investors were in no mood for witing and reacted to the news, sending shares of Cirrus Logic down nearly 11% to $90.39 in morning trade on the Nasdaq.
Kuo believes the change will have "limited impact" on the mass production schedule and shipments for the Pro models.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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