Cirrus Logic's drop in revenue points to decline in Apple iPhone sales

Cirrus Logic's drop in revenue points to decline in Apple iPhone sales
Apple iPhone supplier Cirrus Logic reported that it would report a net inventory reserve of $23.3 million for the fourth quarter. $20.7 million is due to a high volume company's decision to switch to a newer Cirrus component. Margins are now expected at 40.4% vs. the 50% to 52% previously expected. The company now expects Q4 revenue of  $206.9 for the period that expired March 30th. In January, the company forecast revenue of  $200 million to $220 million for the period. For the current quarter, Cirrus Logic is now expected to post revenue of $150 million to $170 million which is below the $195 million estimated by analysts.

All of this started to get Apple stockholders nervous as speculation grew that lackluster sales of the Apple iPhone was responsible for the shortfall in earnings. Both the Apple iPhone and Apple iPad use audio chips from Cirrus Logic, so any drop in the top line at the company had Apple investors reaching for the phone to call their broker. Apple's shares were decimated on Wednesday, at one point making a new 52 week low around $398. It didn't help that Needham & Co. analyst Vernon Essi Jr. blamed the problems at Cirrus Logic on problems at Cupertino.

Essi jr. said that Apple was "losing its mobility mojo," and added that the guidance "indicates that the recent fears of Apple’s lackluster iPhone demand in 2013 are warranted". He sees first half 2013 sales of Apple's iconic smartphone closer to 55 million than the earlier forecast 60 million. In addition, R.W. Baird analyst William Power said that increased competition would result in lower than expected Apple iPhone sales and also because Apple will probably not release a new iPad this quarter as it has in previous years. Some are calling for a 20% to 30% drop in Apple iPad mini shipments this quarter as buyers back off, expecting a new model of the device which probably won't launch until later this year.

source: Barron's, Marketwatch via BGR




Posts: 4851; Member since: Apr 13, 2012

398p Apple will tumble more, untill the iP5s is not vailable Apple no longer are innovating nor making any evolution to its ios, looks like ios7 will be like ios6? If it does, shares will even drop to 298p....! Lets await and see™®

2. JulianGT

Posts: 89; Member since: Oct 15, 2012

you really hate a company that much? you want them to go bankrupt


Posts: 4851; Member since: Apr 13, 2012

I own ip5™ I was analyzing™ I didnt mention nor did i state any negativeness, was stating actuall facts®

4. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Both Apple stock holders and fans are having a nervous breakdown but somehow I don't sympathize them. I wonder why? :-)

8. anywherehome

Posts: 971; Member since: Dec 13, 2011

no, Apple is simply a rotten company, facts: -Apple censores your personal emails, UNBELIEVABLE! -Apple eBook price fixing lawsuit - because of Apple we have to pay more for eBooks in the whole world!!! -Greedy Apple - Because of the trust Apple+Microsoft+Adobe you have to pay more for IT in Australia!! -Disastrous iPhone security! - iPhones most vulnerable among smartphones. -"Apple iOS Apps Leak More Personal Info Than Android". -40% of iOS popular apps invade your privacy without any permission. -FBI files: STEVE JOBS was a lying, power hungry, mad man. -Italy fines Apple $1.2 million over AppleCare practices. -stolen statusbar, every new feature in iOS7 will be stolen from Android like iOS5 and iOS6 just Microsoft is worse than Apple

11. WakaFlakaD

Posts: 576; Member since: Apr 30, 2011

Just stay the hell out of the topic if all you do is to troll

9. GadgetsMcGoo

Posts: 168; Member since: Mar 15, 2013

Dropping in share price a bit doesn't mean that they would go bankrupt. So relax.

12. artealis

Posts: 98; Member since: Dec 15, 2010

yes, i hope they will bankrupt why not? my ipod touch stuck with 4.3.3 and my only option is to use it as mp3 player my xperia mini x10 still can download and use lot of apps apple god want u always buy new product once a year just ask the old ipod touch user, they will tell you that they really in love with apple product and still use it till today as a paperweight

13. thelegend6657 unregistered

i owned an iPod touch 4th gen , its not really reliable , screen quality problems , but i sure love the design of it and its running iOS 6 I bet you x10 mini is stuck on android s**tty 2.1 , i owned an x8 too , GPU on the x8 is s**t and as far as i know most apps are 2.2 above .

7. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Chickens (stale UI for one) are coming home to roost. The only problem for Apple is the time it takes to re-imagine a new UI. Then there is the time to actually produce the software. Apple (and its suppliers) are going to face diminishing sales until the New (truly New, not some warmed over hack job) iPhone is released. A same-old, same-old iP5S with tweaked chipset ain't gonna cut it.

5. WakaFlakaD

Posts: 576; Member since: Apr 30, 2011

I've gotta say, their soundcard is not very good comparing to the iPhone4

6. jeff1434325

Posts: 97; Member since: Aug 07, 2012

...gotta agree with u, I think they should use wolfson's audio chips.

10. WakaFlakaD

Posts: 576; Member since: Apr 30, 2011

There's a paid app Equalizer, try it. It posts better sound quality

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