Through TheFLY's Eyes: Qualcomm
from Theflyonthewall.com





Qualcomm Continues To Deliver

Amid concerns of an inventory build-up in handsets, Qualcomm (QCOM) increased guidance for the quarter yesterday. The reason for the strength is the success it is having with its 3G (W-CDMA) European adoption and CDMA2000.

Qualcomm increased its revenue and EPS estimates due to higher ASPs, which they expect to hit $213 up from $205. The willingness to pay higher prices for Qualcomm chips is due to the strong demand for multimedia applications such as games and mobile TV. In addition, the company is staying true to form, by developing leading edge chipsets that market needs.

Apparently, from looking at Qualcomm's results, the inventory glut might be more at the lower end, as the higher-end international market is moving to more expensive, higher bandwidth handsets.