Qualcomm has registered a 25 per cent increase in revenues in the final quarter ended December 31, 2005. Sales volumes of its WCDMA handsets reportedly increased by 24 per cent during the quarter, with sales in Europe up by 51 per cent. With competition from more manufacturers, the average selling price of WCDMA handsets fell by 10 per cent, to $372 while prices for low-end handsets dropped much faster from $217 to $141.
Qualcomm’s chips business reported a 19 per cent increase in revenues to $1.033 billion, while its higher-margin licensing business rose 41 per cent to $564 million. Overall revenues, at $1.74 billion, were marginally lower than Wall Street expectations.
Reported net income increased by 21 per cent, to $620 million, or 36 cents a share.
