Qualcomm raises Q2 forecast thanks to chip sales

Qualcomm's mobile phone chips have been selling at an unexpectedly higher rate. 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, over EV-DO and W-CDMA, respectively.

For more on Qualcomm's forecast:
- see this report from the WSJ (sub. req.)