I don't know if you noticed, but Apple
Not by much, mind you. Analysts have caught on to the Apple-Cirrus symbiosis. The company reported earnings of $0.36 per share on $110.6 million in sales, ahead of Wall Street's $0.34 and $110.1 million estimates, respectively. Management expects to double inventories on hand in the first quarter while direct sales slow down, preparing for a bulge in the second quarter. If you still don't get the magnitude of the September boost that's coming down the pipe, Cirrus even opened a fresh $100 million revolving credit line that it "may need in order to support the production ramps of multiple new products this fall."
The next-generation iPhone (Will it be the iPhone 5 at long last? iPhone 4GS? "The new iPhone"? Place your bets, ladies and gentlemen!) is one likely catalyst for these moves, and the timing of it all would point to the phone hitting store shelves around the back-to-school season. But the iPhone 4S was also pretty huge last year, yet Cirrus never needed to prepare for the launch in such a dramatic manner. Does Apple have any new tricks up its sleeve -- the kind of high-volume gadget that would move millions of units in its first quarter? Stay tuned for more innuendo.
In other news, smartphone makers not named Apple are starting to ask for higher-quality sound systems. A new line of audio amplifier chips is opening up whole new markets across the mid-range and high-end phone industry.
And outside the mobile sector altogether, Cirrus shipped 500,000 power controllers for LED lighting solutions this quarter. That brand-new market should open up later on; CEO Jason Rhode wants to ship between 5 million and 10 million LED controllers in the just-started 2013 fiscal year.
It never hurts to diversify a smidgen, especially if both of your core markets are high-growth opportunities. So now you can buy Cirrus as a proxy for Apple in the smartphone field, or as a proxy for Cree
Fool contributor Anders Bylund holds no position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Cirrus Logic and Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.