New York, February 2 (FinanceEnquiry.com) - Against analysts’ expectations of Qualcomm Inc.’s (NASDAQ: QCOM) fiscal second-quarter sales of $4.51 billion, the biggest maker of mobile-phone chips sees second quarter sales ending in March in the range of $4.6 billion to $5 billion. Growing demand for smartphones and ownership of code division multiple access (CMDA) technology enables Qualcomm to charge royalties on all 3G phones and networks. Majority of the profit of the San Diego-based company is obtained from these royalties.

Qualcomm is also the largest seller of modem chips, that connect phones to mobile networks. With the burgeoning demand for smartphones, the company is deemed to be in the right market. It also supplies applications processors and is in the process of trying to sell bulked up versions that can be used in larger machines, such as personal computers.

With high profile customers, such as Samsung and Apple, Qualcomm reported first-quarter net income of $1.4 billion, or 81 cents a share up from $1.17 billion or 71 cents a share a year earlier. The company posted 40 percent higher revenue at $4.68 billion in the period ending Dec. 31. Analysts had estimated on average profit of 75 cents a share and sales of $4.6 billion. Qualcomm stock went up 1.3 percent to $59.56 at the close in New York. In the past year, the stock has gained 8.1 percent.