Qualcomm gives upbeat sales forecast In sign of smartphone recovery

China remains crucial amid sales surge to its phone-makers in first half of fiscal year

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Qualcomm, the world's biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump.

Revenue in the three-month period ending in June will be US$8.8 billion (S$12 billion) to US$9.6 billion, the company said in a statement on May 1. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and profit of US$2.16 a share.

The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm's forecast that demand would gradually recover in 2024.

The company, based in San Diego in the US, also reported betterthan-predicted results in the second quarter buoyed by headway in China, where it sells technology to local phone manufacturers.