Smart phone demand drives Qualcomm to raise financial estimates

June 11, 2009 | Dean Takahashi | Comments | |

Strong demand for smart phones has prompted high-end mobile chip maker Qualcomm to upgrade its revenue and income targets for the third quarter.

This is a big deal since most other categories of component makers are still have troubles because of the recession. Smart phones are evidently one of the few bright spots in the economy.

Revenues for the  San Diego, Calif., company’s third fiscal quarter ending June 28 are estimated to be $2.67 billion to $2.77 billion, up from earlier guidance of $2.4 billion to $2.6 billion. Operating income is expected to be $1.06 to $1.11 billion (excluding one-time items), compared to the prior guidance range of $800 million to $900 million.

Shipments of CDMA (code division multiple access) modem shipments will be higher at 94  million to 95 million units compared with the prior guidance range of 87 million to 92 million units. Average selling prices are expected to be $191 compared with the prior estimate of $196.

Paul Jacobs, chief executive, said that the new guidance reflects stronger demand for data-capable chip sets that are used in the most advanced phones, as well as increased revenue from licenses for 3G network upgrades. While some chip set demand in developing countries has shifted to the fourth quarter, the company said there will be a modest decrease in chip set shipments in the fourth quarter.

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About the Author, Dean Takahashi

Dean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.

  • Agree.... I think the telecommunication industry still hot even when the recession. The stock price level of this business are higher and higher. This is business that never lose at recent time