The Apple iPhone 14, iPhone 14 Pro, and iPhone Pro Max on sale at the company’s Fifth Avenue store in New York, US, on Friday, Sept. 16, 2022. Photographer: Jeenah Moon/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
Kuo had previously said that Apple would expand its use of Cirrus’ technology beyond haptic touch and replace the physical volume buttons with solid-state technology. But, in his most recent note posted on Tuesday evening, Kuo said “unresolved technical issues” had forced the tech giant to abandon the change.
“Investors had anticipated that the new solid-state button design would increase suppliers’ revenues and profits; thus, this change is particularly unfavorable for Cirrus Logic (exclusive Controller IC supplier) and AAC Technologies (Taptic Engine supplier),” Kuo wrote on Tuesday.
Shares of Shenzhen, China-based AAC fell just under 15%.
Cirrus and Apple didn’t immediately respond to requests for comment.