‘Apple stock tanks on bad news from audio chip supplier’

Erica Ogg:

Even if that’s true, there’s more than one possible explanation for Cirrus Logic’s excess supply of chips. Apple could have switched providers of those chips, for instance. Apple CEO Tim Cook warned when similar negative supplier reports caused a massive freakout among investors a week before earnings last quarter: “I’d stress that even if a particular data point were factual, it would be impossible to interpret [the meaning] for our overall business. Yields can vary, supplier performance can vary … there’s an inordinately long list of things that would make any single data point not a great proxy for what’s going on.”

Easier just to blame Apple, which is why the stock plummeted today.

  • tylernol

    here’s my analysis: Cirrus may have been designed out in existing devices in a cost-reduction exercise by Apple(Austin is littered with the charred remains of former high-flying Apple chip suppliers) . What is more likely is that Apple’s 5S/6 or whatever it will be called has gone into production sooner than expected by Cirrus, leaving them with a backlog of chips they build based on prior projected production cycles.

  • The whole market was down.

  • gravitycollapse

    No, Apple did not “lose 25 billion” in the same way Cirrus did. Cirrus had an actual shortfall in cash on the balance sheet. Apple merely lost stock value. Two completely different things.