Qualcomm produces the Snapdragon processor used in many smartphones in the market, and today announced higher quarterly sales than analysts estimated. The $3.45 billion to $3.75 billion in sales for the second quarter guidance drove the company's shares up in late trading, as analysts had only expected sales of just over $3 billion.
The company's forecast is strong and has analysts predicting a strong year, in part due to the iPhone hitting Verizon next month. Analysts are expecting Verizon to sell millions of iPhones this year, and Qualcomm will see the benefits of those sales as it supplies radios in the iPhone. The radio chip business in addition to Snapdragon processor licensing (used in many Android phones) will help Qualcomm stem the competition from Nvidia, which is set to see its Tegra 2 processor appear in smartphones soon.