Yesterday, I reported on rumors coming out of Taiwan that Apple (Nasdaq: AAPL ) might be changing its hardware designs radically. That was based on rumors, but believable enough to send Cirrus Logic (Nasdaq: CRUS ) to the market's doghouse for allegedly losing its prized audio chip contract with Apple.
Today, we know better. Analysts with the ability to read Mandarin Chinese have clarified the original article, which turned out to focus on how Qualcomm (Nasdaq: QCOM ) would benefit leading chip foundry Taiwan Semiconductor Manufacturing (NYSE: TSM ) if a CDMA-enabled iPhone ever comes to pass. That article mentioned Cirrus and others only briefly, and actually only to point out that they probably would stay in Apple's good graces. The fact that Cirrus' department of corporate communications felt the urge to notify me of this re-reading tells me that there's probably something to it.
Cirrus, for one, largely recovered later in the day but has sunk a little further since then; probably just the sugar high wearing off after a big mention on Jim Cramer's Mad Money show Wednesday. The bottom line is this: A wild rumor pushed Cirrus down, but reality paints a different picture. There's no reason to sell Cirrus Logic or AT&T (NYSE: T ) today, nor would you be wise to buy Qualcomm or Marvell Technology (Nasdaq: MRVL ) based on their landing large roles in Apple's next generation of iPhones. If you bought Cirrus on the negative rumor, you should be able to make a nice profit if and when actual news of the company staying iPhone-bound comes out. Funny how that works.
What remains is the separate rumor putting Samsung OLED screens in iPhones next year to the detriment of Samsung's own smartphones. That possibility has yet to be debunked and may present an actual catalyst for OLED technology licensor Universal Display (Nasdaq: PANL ) . Then again, you hardly need an excuse to love where that stock is positioned today, do you?