Apple (AAPL) recent struggles seemed to hit a new peak on Wednesday, as shares for the tech giant took a hit of over 5.5 percent, down to $403.10. Shares fell to as low as $398.11 at one point during the trading session.
The drop is being attributed to Cirrus Logic (CRUS), the semiconductor manufacturer that supplies audio chips for iPhones and iPads. The company was down over 15 percent on Wednesday with shares trading at $18.12 after announcing that it expected earnings to come in short of expectations.
Cirrus now expects its earnings statement to show the company earned $0.55 cents per share on revenue of $206.9 million, well shy of expectations that had estimated earnings at $0.89 cents per share on revenues of $210 million. Meanwhile, Cirrus cut its guidance for the second quarter from $195 million down to $150-$170 million.
The company explained the shortfall by “a decreased forecast for high volume product as the customer migrates to one of Cirrus Logic’s newer components.” This has led to speculation that Apple, one of the company’s biggest customers (and long-time investors), is seeing a decline in demand for iPhones and iPads.
Investors and consumers alike have been incredibly impatient of late for a new Apple product. Rumors and speculation about iWatches, iTVs, and even iCars are in no shortage, but the company has been relatively tight-lipped about its plans.
Meanwhile, competitors like Samsung and Blackberry (BBRY) have stepped in to the breach, flooding the market with a variety of new smartphone and mobile products, with more promised from the likes of Google (GOOG) and Amazon (AMZN).
Apple reports quarterly results on Tuesday, April 23.