Qualcomm increases 3G / 4G device shipment and revenue targets for FY 2013

Telecom Lead America: Wireless chip major Qualcomm has increased 3G / 4G device shipment estimates and revenue and earnings guidance for fiscal 2013.

As per the revised estimate, which was shared on Wednesday, Qualcomm said it aims to generate $24-25 billion revenue, up 26-31 percent, against earlier estimate of $23.4-24.4 billion in FY 2013.

Last month, Infonetics predicted that LTE market will almost double in 2013, passing the $10-billion mark for the first time.

Telecom operators are in the midst of a second wave of LTE deployments, and LTE-Advanced is gearing for true 4G prime time, with NTT Docomo, SK Telecom, and likely Russia’s Yota all planning launches this year. Wireless subscribers reached 6 billion in 2012 and are expected to reach 7 billion by 2017, including 569 million LTE subscribers.

Paul E Jacobs, chairman and CEO of Qualcomm, said: “We are seeing strong traction with our new Qualcomm Snapdragon 600 and 800 processors, and we continue to expect healthy growth in 3G and 3G/4G multimode devices around the world.”

Qualcomm’s Q2 revenues rose 24 percent to $6.12 billion.

The chip major’s operating income increased 24 percent to $1.88 billion.

However, net income for the second quarter of fiscal 2013 ended March 31, 2013, declined 16 percent to $1.87 billion.

Qualcomm’s MSM chip shipment in the second quarter was 173 million units, up 14 percent.

December quarter total reported device sales were approximately $61.1 billion, up 18 percent.

Qualcomm says its December quarter estimated 3G/4G device shipments were approximately 279 to 283 million units, at an estimated average selling price of approximately $214 to $220 per unit.

Telecom analysts expressed concern about the impact of falling average selling prices of phones on Qualcomm. In the quarter, the ASP fell to $217 from $227 the prior quarter. Qualcomm attributed the decline to more units being sold in emerging markets, where phone prices trend lower. Qualcomm expects ASPs to be higher this quarter, and guided to a $220 average for the year.

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