The stocks of Apple suppliers Cirrus Logic and AAC fall 12%+ and 14%+, respectively, after Ming-Chi Kuo said iPhone 15 Pro models won't have solid-state buttons
It also echoes earlier coverage of Apple’s ability to alter supplier allocations late in a product cycle, including a last-minute A9 chip-order split. The market reaction matters because it exposes how closely component suppliers’ outlooks can be tied to a single anticipated iPhone design choice.
First-order effects
Cirrus Logic and AAC face an immediate repricing of expectations for their potential content in the iPhone 15 Pro line after the reported abandonment of solid-state buttons.
Apple can retain conventional buttons for the Pro models rather than expanding the component technologies investors had associated with the new design.
Second-order effects
Investors and analysts will reassess which suppliers gain or lose content when Apple changes a hardware feature, raising scrutiny of each company’s dependence on future iPhone configurations.
The reaction reinforces that supplier valuations can move on design-roadmap signals before Apple has disclosed final specifications or purchasing volumes.
Third-order effects
If this pattern persists, Apple’s product-design decisions will remain a major source of volatility for specialized component makers, whose addressable market can change with a feature’s inclusion or delay.
The broader supply chain may place greater value on products that serve multiple device designs and customers, rather than relying on one prospective flagship-model feature.
The trend: Smartphone component suppliers are increasingly being valued on their exposure to changing flagship-device designs, not only on reported shipment volumes.
@iOS_App_Dev can always buy the 16 solid state buttons were one of the things i was really excited for because of the potential behind it. everything else is just incremental imo
In a world without rumors, Apple would have tested these solid-state buttons and decided against it without anyone knowing. This is the perfect example of “Apple's plans are subject to change.” https://twitter.com/...
MORE: Apple will likely try to manufacture the next iPhones in India at the same time as in China, sometime in the fall of 2023. If so, that will be the first time that iPhone assembly begins concurrently in the two countries https://www.bloomberg.com/...
Smart move. Respectfully, China is a political disaster, and no business will be safe from it. Apple Triples India iPhone Output to $7 Billion in China Shift https://www.bloomberg.com/...
Apple's pivot from China is picking up speed. The production of iPhones in India tripled last year and the country now accounts for about 7% of the global total. Scoop from @sankalp_sp https://www.bloomberg.com/...
If so, that will be the first time that iPhone assembly begins concurrently in the two countries. If the aggressive expansion of suppliers continues, Apple could assemble a quarter of all its iPhones in India by 2025. https://www.bloomberg.com/...
India is fast becoming the focal point of Apple's iPhone production beyond China | Apple Triples India iPhone Output to $7 Billion in China Shift https://www.bloomberg.com/... with @markgurman @debbywuintaipei @edwininla