Wednesday, September 21, 2005

Qualcomm Raises Outlook for 4th quarter

On the financial front, Reuters writes that Qualcomm "raised its earnings and revenue outlook for the fiscal fourth quarter on strong demand for high-speed wireless devices and chip shipments that were at the higher end of its earlier forecast."

Albert Lin at American Technology Research said, "I don't think anybody is surprised by this. Over the last few weeks I think its become apparent that the cellular phone industry is having a very strong quarter." Lin cited Qualcomm would benefit from Vodafone's recent announcement that "it had sold more than a million high-speed wireless or third-generation mobile phones for Web surfing since July"

While the strong demand for cheap phones in developing countries was reducing selling prices, Lin believed license royalties for W-CDMA had helped sales. "They're probably selling more lower-price chips combined with a better royalty stream from third-generation high-end phones," he said.