iPhone 7 worries: Chip stocks cut by Pacific Crest

A shopper in an Apple store looking at an Apple iPhone 6s in Moscow.
Sefa Karacan | Anadolu Agency | Getty Images

Pacific Crest lowered its ratings for Skyworks Solutions and Cirrus Logic to sector weight from overweight on the prospect of poor Apple iPhone 7 sales later this year.

"Our lowered estimates reflect a much more disappointing 2H16 iPhone 7 ramp than what we had previously expected," Pacific Crest's Michael McConnell wrote in a note to clients Monday. Apple is expected by analysts to release the new smartphone in September.

"Conversations with multiple supply-chain partners indicate Apple is taking an extremely conservative approach toward its iPhone 7 build in 2H16."