Qualcomm profits rise 35 percent as demand for smartphones surge
New York, NY, United States (4E) – Qualcomm Inc. posted a 35 per cent rise in earnings during the third quarter and increased its full-year guidance amid strong demand for smartphones and the company’s recent acquisition of Atheros Communications Inc.
The San Diego-based wireless chip maker reported 29 percent rise in quarterly revenues to a record $6.02bn, compared to analysts’ estimate of $5.9bn.
The company, known for popularizing the wireless technology code division multiple access (CDMA), has gained from the massive rise in demand for smartphones and other mobile devices. Qualcomm, which makes much of its profits on licensing fees for its 3G technology patents, produce chips that are used in 3G mobiles phones including the Apple’s iPhone for Verizon Wireless.
Analysts say that Qualcomm has a two-year advantage over its competition in integrating into chipsets the different wireless standards like 4G LTE.
Qualcomm delivered a record 120 million chipsets to customers during the period, which is a 17 percent jump from a year ago and higher than its guidance as businesses’ demand for chips that integrate different functions rose.
For the fourth quarter, the company predicts shipments to reach 120 million to 125 million units while consensus estimate from analysts call for shipments to reach 128 million to 130 million.