qualcomm chip sales indicate some smartphone strength - smart

(Reuters)-U. S.
Qualcomm chip manufacturers (QCOM. O)
Quarterly profits and revenues outpace Wall Street forecasts, suggesting that the slowdown in the global smartphone business may not be as severe as a series of weak forecasts from suppliers.
The results released by Qualcomm's smartphone chip business are compared with the results of major Asian handset component manufacturers including TSMC (TSMC (2330. TW)
And SK Hynix (000660. KS)
They warned that growth in their smartphone chip sector slowed.
Revenue from Qualcomm's chip divisionits largest -
In the three months ended March 25, the company's operating income increased by 6% per cent, down 44% per cent
Patent battle with Apple Inc. AAPL. O).
While chip sales were strong in the quarter, the company did see some signs of weakness.
The company expects growth in the modern mobile phone market to reach around 5% for the rest of the year, below expectations.
However, mobile phone prices are higher than expected.
"Qualcomm has released solid results, but its guidance points to a weak mobile phone market, especially in China," said Rick Lane, senior vice president of Moody's . ".
Qualcomm is also waiting for Chinese regulators to consider its application to acquire NXP, the chipmaker, and chief executive Steve molenkopf expects the deal to be completed.
If not, Qualcomm plans to buy shares in cash dedicated to this transaction. back.
This agreement is a diplomatic concern between countries, not Qualcomm --
Specific questions, he said.
The biggest spat is in the United States. S.
Export ban on China's ZTE Corporation000063. SZ)
After being found exporting to Iran
Qualcomm said it expects a loss in its business with ZTE to cut its quarterly profit by 3 cents per share, although executives also said, other smartphone manufacturers who have business with the company may make up for the loss of revenue for a longer period of time.
The result is San Diego-
Qualcomm-based Qualcomm is trying to convince shareholders to boost revenue by cutting annual costs by $1 billion and resolving Apple disputes.
Qualcomm predicts the current Wednesday-
Quarterly revenue is between $4. 8 billion (£3. 44 billion)and $5.
6 billion, adjusted earnings per share are 65 cents to 75 cents.
Analysts expect revenue of $5.
According to Thomson Reuters I/B/E/S, earnings per share were $32 billion
Qualcomm's quarterly net income fell from $0. 363 billion a year ago, or 50 cents a share, to $0. 749 billion, or 24 cents a share. Excluding one-
According to Thomson Reuters I/B/S, Qualcomm earned 80 cents per share in time programs, up from the average analyst estimate of 70 cents.
Total revenue increased by 4. $ 9% to $5.
26 billion, exceeding expectations of $5. 19 billion.
Qualcomm shares rose 1% to $50. 25 in after-
Trading time on Wednesday.
The mood also seems to help boost other chip makers.
Micron Technology, manufacturer of memory chips (MU. O)
Rose 1% to $48.
After the announcement.