Apple (AAPL) is reportedly asking several key suppliers to scale back component production for its flagship devices, as higher retail prices driven by rising memory chip costs appear to be cooling consumer demand. And if iPhone sales lose steam, the ripple effects could reach far beyond Apple itself.
Take Cirrus Logic (CRUS), for instance. The semiconductor company relies heavily on Apple, which contributes the lion’s share of its revenue, according to KeyBanc Capital Markets analyst John Vinh. With Apple reportedly taking a more cautious approach to iPhone production, Vinh sees a risk that unit sales could stay flat or slip slightly in 2027, dampening Cirrus Logic’s growth prospects. That concern prompted him to downgrade CRUS stock, adding to the pressure on shares.