COVID-19 ‘Turbulence’ Affecting Android Vendors Like Cirrus Logic; Stock Down
The coronavirus pandemic is both helping and hindering Cirrus Logic. Sales increased 2% in fiscal Q1 ended June 27, mainly from “higher content and volumes” in tablets, “as people worldwide continue to work from home due to COVID-19,” said a…
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shareholder letter Monday. “Large chunks of the Android space have suffered the turbulence in the COVID-19 environment,” said President John Forsyth on a Monday investor call. “That's a reflection of just the kind of progressive lockdown around different markets.” Some Android vendors rely heavily on “distribution channels that they don't control,” making them a "bit more susceptible” to downturns during the crisis, he said. Android companies have taken “a fair amount of buffeting” during the pandemic, said Forsyth. Cirrus hopes much of that “stuff” will be “behind us as we go into the next few quarters,” he said. The company is emphasizing tablets and laptops more than historically, but the strategy predates the novel coronavirus and the “transition of large parts of humanity to working from home,” said Forsyth: “There's certainly renewed interest in those segments.” Google, maker of the Android operating system, didn't comment Tuesday. The company's stock closed down 8.1% at $68.43 Tuesday.