Shares of Apple supplier Cirrus Logic fall 12% after Kuo says iPhone 15 will remove solid-state buttons

Shares of Apple vendor Cirrus Logic fell around 12% after a top analyst said the iPhone maker would abandon the design of solid-state buttons for high-end 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 product launches, said in a blog post that the company has decided to abandon the design change.

“Investors expected the new solid-state button design to increase vendor revenue and profit,” Kuo said.

Kuo said the iPhone 15 Pro smartphones are at the engineering validation and test (EVT) stage and Apple has the option to change its design, adding that the decision is also unfavorable to another vendor, AAC Technologies Holdings. , listed in Hong Kong.

Shares of integrated circuit maker Cirrus Logic hit their lowest level in more than two months and are expected to see their worst day in about two years.

Kuo added that the removal of the solid-state buttons “should have limited impact on the mass production schedule and deliveries of the Pro models.”

Last week, Wedbush Securities analyst Daniel Ives said in a note that iPhone demand, particularly in China, saw a marked increase in Apple’s second quarter “with a strong March, and that’s music to investors’ ears.”

Apple and AAC Technologies did not immediately respond to requests for comment from Reuters. Cirrus Logic declined to comment.

© Thomson Reuters 2023

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