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.