CORRECTED-UPDATE 2-Qualcomm quarterly revenue beats Street; stock up

Wed Jul 24, 2013 6:25pm EDT
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(Corrects analyst's last name in fourth paragraph)

By Noel Randewich

SAN FRANCISCO, July 24 (Reuters) - Shares of Qualcomm Inc rose more than 3 percent after the leading mobile chipmaker posted third-quarter results that met expectations and eased concerns about slower growth of smartphone sales.

Few semiconductor companies have benefited more from the mobile revolution than Qualcomm, but the supplier of chips for Apple Inc's iPhones and Android devices has begun to face pressure as growth in smartphone sales shifts to Asia.

In its fiscal third-quarter report on Wednesday, Qualcomm met expectations for earnings and was ahead on revenue.

"It looks like momentum is continuing. It doesn't feel like the smartphone story is over," Bernstein analyst Stacy Rasgon said.

In Apple's quarterly report on Tuesday, the Cupertino, California company said it sold more iPhones than Wall Street had expected.

Network operators worldwide are shifting to a high-speed wireless technology known as long-term evolution (LTE) that Qualcomm is a leader in, helping the company grow much faster than Intel Corp and other suppliers of chips for personal computers.

But Qualcomm faces competition from small Asian mobile chipmakers as well as market leader Intel, whose mobile push is showing promising signs after failing to attract device makers in recent years.   Continued...