Apple supplier Cirrus slumps as pricing pressure grows
SAN FRANCISCO (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)