Apple Stock Price Down After Cirrus Logic Reports Lower Than Expected Results
Apple Inc. (AAPL) stock price is once again faltering, after one of the company’s key suppliers, Cirrus Logic reported weak results. On Wednesday, Apple’s stock was down more than 5% from the $420 opening price, reigniting concerns that the company may not be performing up to analysts expectations.
The stock went below $400 briefly and then rebounded to stop at $402 at the market’s closing. Reports from credible sources are questioning the reasons why the stock is taking such a hit, with many claiming in recent months that Apple is experiencing an innovative lull. Cirrus Logic reported to their investors that one of their clients was moving towards purchasing a new component from them, and reducing purchases of a high-volume product.
As a result, Apple can automatically be assumed to be the unnamed client because of the use of audio chips from Cirrus in the iPad and iPhone. Cirrus has been experiencing significant growth due to the massive sales of iPhones and iPads in recent months. Apple has been seeing slow earnings, with the company’s holiday quarter earnings falling flat. Apple is scheduled to announce their Q2 2013 earnings result in less than a week, on April 23rd.