CHIP DESIGNER Qualcomm reported bumper fiscal third quarter financial results with profits rising by 31 percent to $1.58bn.
Qualcomm is riding high on the smartphone and tablet boom with its Snapdragon chips powering a number of high-profile devices including some Samsung Galaxy S4 handsets and the recently announced second generation Nexus 7 tablet. The firm's device wins have translated to impressive fiscal growth, with revenues up by 35 percent to $6.24bn and profits increasing by 31 percent to $1.58bn.
Qualcomm's Snapdragon chip is still the prescribed standard processor for Microsoft's Windows Phone devices and is powering many showcase Android smartphones including the HTC One. The firm has benefited from Texas Instruments desire to get out of the consumer system on chip (SoC) market and Nvidia's Tegra 4 taking a long time to appear in the market.
Qualcomm chairman and CEO Paul Jacobs said, "We delivered another strong quarter as our Qualcomm Snapdragon solutions were prominent in a broad set of flagship smartphones, and 3G/4G device average selling prices were stronger than expected. We also focused on return of capital to stockholders and increased our stock repurchases and dividends paid during the quarter.
"This quarter, we continued our technology leadership, with our Snapdragon 800 processor powering the world's first LTE-Advanced smartphone."
Qualcomm is forecasting fourth quarter revenue of $5.9bn to $6.6bn, which will represent a 21 percent to 35 percent increase from the same period last year. Given that Google picked Qualcomm's Snapdragon chip to power its high volume Nexus 7 tablet, it is highly likely that one of the highest volume, high-end tablets will help pad Qualcomm's bottom line handsomely during the lucrative back to school and holiday buying seasons.
What Qualcomm's revenue forecast shows is how much potential revenue Intel is losing out on by not having a competitive low power chip. µ
Sign up for INQbot – a weekly roundup of the best from the INQ