Because CRUS is tightly aligned with Apple (AAPL) everytime AAPL gets a cold, CRUS gets the flu. The only vaccine or innoculation is for CRUS to diversify. But why should it? AAPL CEO Tim Cook has said that China is going to be AAPL's biggest market. A bit down the road that is a huge number of iPhones, iPads, iMacs.
But I picked up a copy of Consumer Reports at Barnes & Noble last night.
(Used to go to Borders, but Borders, almost all independent bookstores and Tower Records, Virgin Records, Musicland, and independent record stores, and Best Buy and Circuit City are all victims of iTunes).
And lo and behold Consumer Reports does NOT rank the iPhone as the top phone. I have seen other articles stating that the competion is catching up to Apple. Tim Cook needs to be careful that Apple doesn't get distracted by creating a lot of products (and God forbid! mediocre products) and lose its bread and butter market.
I checked Morningstar (online of course) last night and it shows AAPL at 5 stars and a fair value of $770 and suggested selling at $1,090. Morningstar does not rank CRUS. Likewise checked Value Line in its Jan 11 issue it has a 3 - 5 year target price for CRUS of $65 to $100 and a 3 to 5 year target price for AAPL of $1,090 to $1,470.
So all is not bleak for AAPL. It is just that now that it is the 800 pound gorilla everyone has taken a bead on it. There will be numerous stories about how AAPL, that could do no wrong, now can do nothing right and is constantly tripping over its own shoelaces.
Likewise, all this transfers to CRUS (guilt by association).
1. CRUS needs to diversify and speed up its current diversification efforts.
2. CRUS needs to prepare for reductions, ruptures, breaches, or break up with AAPL.
3. CRUS investors need to ride out the rough waters (by on dips).
4. But CRUS investors need to also shine a strong, clear light on the AAPL and CRUS relationship.
It may have progressed as far as it ever will.
I still hold shares of CRUS and expect to continue to hold them.
dgalbers...... regarding CRUS diversification, I was able to purchase 2 of the new Philips A19 11 dimmable lightbulbs yesterday at Home Depot after my local HD store was restocked late Saturday....... the bulbs are really nice and produce a clean, white light..... I also stopped at the local Lowe's store and they were loaded to the gills with GE LED bulbs..... I asked a Lowe's lighting sales rep if they carried the Philips bulbs and he immediately started talking about also having the "right" dimmable switches to work with the LED bulbs. I let him know that it would be better to carry the Philips bulbs since they work with over 200 dimmers, making swapout of switches unnecessary...... the sales rep was obviously aware of the dimmer issues..... I tried to do my part and suggested they look into carrying the Philips bulbs.
Just as a followup..... my local Home Depot was sold out of the Philips A19 dimmable 11w daylight bulbs late afternoon Saturday..... they apparently restocked shelves late Sunday with a shipment of at least 10 bulbs ($25.97 each)..... I purchased 2 of the 10 bulbs late Sunday. I haven't checked since Sunday but they are sold out again...... at least this particular bulb appears to be a good seller.
The reports of halving the orders seems to have to do with screens. Could it be that in the light of reports of more impact and scratch resistant screens on the Samsung, Apple is working on improvements which they expect to have developed before the current screen orders would be fulfilled?