Cirrus Logic (CRUS) Tumbles on Apple's (AAPL) Ouster

NEW YORK (TheStreet) -- Shares of Cirrus Logic (CRUS) tumbled after Barclays research note Apple's (AAPL) iPad Air does not contain the circuit maker's audio amplifier.

Breaking apart the iPad Air, tech site iFixit found no Cirrus amplifier socket while Chipworks detected competitor Maxim Integrated Products' amplifier chip in its place. 

"This loss is a clear negative for Cirrus for not only the near-term impact but also what this signals for future iPads and iPhones," said Barclays analyst Blayne Curtis in a research report.

The investment firm reiterated its "underweight" rating and $16 price target. Barclays cut its rating late October on the belief the semiconductor company was relying too heavily on Apple.

Barclays predicts Cirrus likely lost the amplifier socket in the Retina Mini iPad as well, indicating it will be absent from future iPads and the iPhone6. The loss of the amplifier socket in the Air and Mini alone accounts for a loss of $30 to $40 million in annual revenue for full-year 2014.

"We believe there is potential for Apple's entire product line to move away from Cirrus amps over the coming year, which would imply a total revenue drop of [more than] $150 million annually," wrote Curtis.

In the fiscal year ended March, Apple contracts represented 82% of Cirrus' total sales.

By midday, shares had plunged 12.9% to $19.37, while Maxim gained 0.38% to $28.98.

TheStreet Ratings team rates Cirrus Logic Inc as a Buy with a ratings score of B-. The team has this to say about their recommendation:

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