Qualcomm raises 3rd-quarter earnings outlook

The San Diego Union-Tribune reports that Qualcomm (QCOM) "raised its earnings forecast for the third quarter, saying that consumer demand had been higher than expected for cell phones that can browse the Web, send video and download music. The San Diego company said it expected revenue for the quarter ending June 25 to range from $1.91 billion to $1.96 billion, up from previous guidance of $1.77 billion to $1.87 billion."

According to the article, Texas Instruments also raised its forecast. Qualcomm said "demand for handsets using Qualcomm's WCDMA technology, or wideband code division multiple access, are exceeding the company's expectations, as are the prices."

Michael Walkley at Piper Jaffray said, "The change in Qualcomm's guidance reflects a strong start to the year in WCDMA handset sales in western Europe."

Qualcomm expected to "collect royalties this quarter on the sales of 65 million to 66 million cell phones, up from its previous estimate of 62 million to 64 million. The average selling price of a cell phone using Qualcomm's technology is expected to be $213, up from a previous estimate of $203."