Qualcomm Projects Strong Revenue, Suggesting Smartphone Gain
- Chipmaker reports quarterly sales, profit that tops estimates
- Renewed relationship with Apple helps licensing revenue
Qualcomm Inc. gave a stronger-than-predicted forecast for the current quarter, indicating that smartphone demand -- fueled by new wireless technology -- may be picking slowly up after a prolonged slump. The company’s shares rose in extended trading.
Investors have been waiting to see whether Qualcomm, after five consecutive annual revenue declines, can parlay its claim of leadership in fifth generation, or 5G, wireless technology into a return to sales growth. While revenue is still declining from a year earlier, the market is stronger than feared and the company is poised to benefit from the rapid uptake of 5G early next year, Chief Executive Officer Steve Mollenkopf said in an interview. Hitting the top end of its revenue range would provide the chipmaker with the first quarterly sales expansion in six quarters.