Apple supplier Cirrus slumps as pricing pressure grows
By Noel Randewich
SAN FRANCISCO May 23 (Reuters) - Shares of Apple (AAPL.O) supplier Cirrus Logic (CRUS.O) slumped 18 percent on Thursday after the chipmaker said in a filing it faces growing pricing pressure in the smartphone market.
Cirrus said in the filing it expects gross margins in the mid-40s. It did not indicate what period it was referring to and a spokesman did not immediately reply to a request for comment.
For the current quarter, Cirrus has said it expects gross margins between 50 percent and 52 percent.
In the filing, it also said revenue for the fiscal year is likely to be impacted by a drop in average selling prices.
"Potential dual-sourcing at Apple, margin pressures at Apple, low cost iPhone bill-of-materials pressures, lack of content-increase opportunities and pricing pressure from Apple are all now much larger question marks," Oppenheimer analyst Rick Schafer said in a note to clients.
Apple, under growing pressure from sellers of low-cost Android smartphones, represents about 85 percent of Cirrus' revenue.
Cirrus' stock was down 18 percent at $18.09.
(Reporting by Noel Randewich; Editing by Nick Zieminski)
((firstname.lastname@example.org)(Twitter handle: @randewich)(415)(677 2542)(Reuters Messaging: email@example.com)) Keywords: CIRRUS MARGINS/
(C) Reuters 2012. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
- Tweet this
- Share this
- Digg this
- U.S. plans to arm Iraq's Sunni tribesmen with AK-47s, RPGs, mortars
- China building South China Sea island big enough for airstrip - report
- Bighorn sheep escapes Los Angeles Zoo, dies after car strikes it
- Apple $450 mln e-book settlement gets final court approval
- India approves $2.6 bln mounted gun purchase - official