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Cirrus falls on risk from iPhone 15 design change

Cirrus Logic Inc. shares fell 12% on Wednesday as analysts highlighted risks to the Apple Inc. supplier’s bottom line from a reported design change to the iPhone 15.

The Austin, Texas-based company derives 88% of its revenue from Apple, according to supply chain data compiled by Bloomberg.

Ming-Chi Kuo, an analyst at TF International Securities Group, wrote that due to unresolved technical issues prior to mass production, high-end iPhone 15 Pro models “will abandon the closely-watched solid-state button design and revert to the traditional physical button design.” This change “is particularly unfavorable for Cirrus Logic” and China-based AAC Technologies, he added.

The view was echoed by Loop Capital, which wrote that the switch would “negatively impact” Cirrus. The firm noted that “changes this late in the game often have residual and unexpected impacts on other components.”

Loop has a buy rating on both Cirrus and Apple.

Despite Wednesday’s drop, Cirrus remains up 21% this year, and it recently closed at an all-time high.

Apple rose 0.7% on Wednesday, bringing its year-to-date advance to 24%. Bloomberg

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