Apple is tanking early today, falling 2.6%, putting the stock at the lowest it’s been since January of 2012, according to Bloomberg.
The crash seems to be related to Cirrus Logic, which is an Apple supplier. Cirrus makes audio chips for iPhones and iPads.
Cirrus Logic’s stock is down ~10% this morning after it pre-announced earnings results that were below expectations.
Cirrus’s March revenue is expected to be $206.9 million compared to expectations of $210 million, said Canaccord analyst Bobby Burleson. Its EPS is $0.55 compared to expectations of $0.89. Cirrus also guided to $150-$170 million for the June quarter compared to consensus estimates of $195 million.
Apple is one of their largest customers. Cirrus was one of those companies people invested in as an Apple proxy. So, if its guidance is down, some people might anticipate Apple’s guidance coming in weak.
As of right now Apple is at $415.11.
It seems investors are running from the stock in fear of next week’s earnings report.
A few analysts have forecasted the possibility that Apple misses its own guidance, and delivers terrible June guidance. If the former happens, the stock is going to dive further.
This Cirrus news isn’t helping to make people feel less concerned about Apple.