×
Pro Analysis

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
A shopper in an Apple store looking at an Apple iPhone 6s in Moscow.

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."