Cirrus Logic sinks as analysts warn of Apple abandoning solid-state button in iPhone 15

By Vlad Schepkov

Analyst at TF International just issued a warning on several suppliers of Apple (NASDAQ:), ahead of the anticipated September 2023 launch of the latest version of iPhone, Apple’s best-selling device.

In his most recent checks on the iPhone 15 development status, the analysts uncovered “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.”

The analysts see the change as having a direct negative impact on suppliers of the technology, particularly Cirrus Logic (NASDAQ:), the exclusive Controller IC supplier, and AAC, the Taptic Engine supplier, as “investors had anticipated that the new solid-state button design would increase suppliers’ revenues and profits.”

They add that “the iPhone 15 Pro is currently in the EVT development stage,” meaning “there is still time to modify the design.”

As for Apple itself, the analysts see “limited impact on the mass production schedule and shipments for Pro models,” given that “removing the solid-state buttons and restoring physical buttons will simplify the development and testing process.”

Shares in CRUS are trading sharply lower in pre-market on Tuesday, down over 6% following the report.