What is the outlook for the smartphone market and its impact on Cirrus Logic’s demand?

Outlook for the smartphone market

• Strong, continued growth – The shareholder letter highlights that the June‑quarter results were “driven by robust demand” for Cirrus Logic’s custom‑boosted amplifiers and the company’s first 22‑nm smart codec that is now shipping in smartphones.
  
• Technology‑driven demand – The rollout of a 22‑nm smart codec signals that smartphone manufacturers are moving toward more advanced, power‑efficient‑efficient audio‑processing solutions. This is typically associated with higher‑end devices that support richer multimedia experiences (e.g., high‑resolution audio, voice‑assistant integration, and advanced gaming/AR features).
  
• Macro‑level optimism – While the release does not spell out a specific market‑size forecast, the language (“robust demand,” “strong financial results”) implies that the broader smartphone market is expected to stay healthy in the near term, with enough volume to sustain component suppliers like Cirrus Logic.

Impact on Cirrus Logic’s demand

1. Increased component sales – The “robust demand” for the custom‑boosted amplifier and the new smart codec directly translates into higher shipments of those parts. Because these components are tied to premium‑audio and advanced‑codec functions, they are likely being adopted across a wide range of new handset models.
   
2. Revenue boost – The Q1 FY2026 revenue of $407.3 million reflects the upside from this smartphone‑driven demand. The company’s own commentary links the revenue performance to the strength of the smartphone market.
   
3. Sustained growth trajectory – By noting that the first 22‑nm smart codec is now shipping, Cirrus Logic signals that it has entered the supply chain for next‑generation smartphones. As more OEMs transition to the newer codec, demand should continue to rise, providing a positive outlook for future quarters.
   
4. Potential for market‑share expansion – Because the company is supplying both a “custom‑boosted amplifier” and a “smart codec,” it is positioned to capture a broader portion of the audio‑signal‑processing market within smartphones, especially as device makers prioritize higher‑fidelity sound and more efficient power usage.

Bottom line

The smartphone market is being described as strong and expanding, driven by the adoption of newer audio‑processing technologies. This environment is directly beneficial to Cirrus Logic, fueling higher demand for its custom‑amplifier and the newly‑introduced 22‑nm smart codec, which in turn underpins the solid financial performance reported for the quarter. If the market momentum continues, Cirrus Logic can expect sustained or even accelerating demand for its audio‑and‑codec solutions in upcoming smartphone generations.