Ming-Chi Kuo, an Apple analyst, said that the next iPhone wouldn’t make more use of Cirrus’ technology, which powers Apple’s haptic touch feature. This caused Shares of Cirrus Logic to drop.
Ming-Chi Kuo had previously stated that the tech giant would replace the physical volume keys on the iPhone 15 Pro with touch buttons.
The analyst stated that Apple had been forced to abandon the change due to “unresolved technical issues.”
Apple’s haptic touch systems are powered by Cirrus technology and components. These systems have replaced physical buttons like the home button on some iPhones with touch-sensitive buttons that feel like pressing a button.
For the most recent quarter, Cirrus’s relationship with its “largest customer,” Apple, was responsible for approximately 88% of its revenue.
Investors had anticipated that the new solid-state button design would increase suppliers’ revenues and profits; thus, this change is particularly unfavorable for Cirrus Logic (exclusive Controller IC supplier) and AAC Technologies (Taptic Engine supplier),” Kuo wrote on Tuesday April 11.