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Apple shares plummet to 2011 levels in Wednesday trading

updated 01:26 pm EDT, Wed April 17, 2013

May be linked to poor Cirrus Logic forecasts

Apple share prices have fallen over $20 in value during Wednesday trading, and as of this writing are sitting close to the $400 mark, according to NASDAQ data. That puts them on par with prices from late 2011. At one point today shares fell slightly under $400, reaching $399.58.

The exact cause of the crash is unknown, but Barron's suggests it may be linked to poor financial forecasts from Cirrus Logic, which counts Apple as its largest customer for audio chips. The company is predicting revenue of $150-170 million for the current quarter, versus an average analyst estimate of $167 million. For the upcoming quarter the company is guiding to $207 million, below a $210 million analyst average.

Needham & Co. analyst Vernon Essi Jr. has cut his Cirrus rating from Strong Buy to just Buy, blaming the supplier's management for "aggressively building to what now looks like an optimistic customer forecast." He also blames Apple for "losing its mobility mojo," referring to recent rumors of lower iPhone 5 production. "The guide indicates that the recent fears of Apple's lackluster iPhone demand in 2013 are warranted," he writes, "and reflect units that are more likely in the 55M range for 1H2013 vs. Street forecasts that are above 60M units."



By Electronista Staff
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