Qualcomm's mobile phone chips have been selling at an unexpectedly higher rate [1]. The firm just raised its financial forecast from earnings of 35-37 cents a share to 41-42 cents per share. Projected revenue is now $2.1 billion to $2.2 billion. Last year at this time Qualcomm reported net income of $593 million, or 34 cents a share on revenue of $1.83 billion.
The growth is mostly attributed to the increase in the total number of chips sold, but the average selling price for CDMA devices also increased to $214, up from prior estimate of $217. Couple that with the increased take up of 3G phones in the U.S. and Europe [2], over EV-DO and W-CDMA, respectively.
For more on Qualcomm's forecast:
- see this report [3] from the WSJ (sub. req.)
Related Article:
Qualcomm posts 14% hike in Q4 profit Article [4]
Links:
[1] http://www.fiercewireless.com/story/qualcomm-surprises-with-higher-than-expected-net-income/2007-01-25
[2] http://www.fiercewireless.com/story/qualcomm-escapes-ban-on-chips/2006-10-11
[3] http://online.wsj.com/article/SB117383188346236190.html?mod=telecommunications_primary_hs
[4] http://www.fiercewireless.com/story/qualcomm-posts-14-hike-in-profit/2006-11-03