KDDI Corp. on Thursday increased its full-year revenue outlook by 2.6%, based on steady growth in demand for Apple Inc.'s iPhone 4S and other smartphones. The move comes in conjunction with Apple reporting its strongest financial results for its fiscal Q1 on the back of iPhone and iPad. KDDI said its net profit of Y54.22 billion for the quarter ending December declined 17% from the net profit of Y65.67 billion for the same period a year ago. The telco attributed the fall to tax adjustments caused by a change in the country’s corporate taxes and a decrease in revenue from voice calls. Operating profit for the quarter declined 5.4% to Y117.48 billion from Y124.19 billion last year, while revenue rose by 5.7% to Y902.13 billion from Y853.42 billion owing to an increase in data traffic for smartphones. ARPU fell 10% to Y4,470 as revenue from voice calls slipped 26%. Nonetheless, revenue from data traffic climbed by 8.2% as more customers adopted smartphones, more so after KDDI started selling Apple's iPhone 4S, ending rival Softbank Corp.’s exclusitivity as the iPhone carrier in Japan. Bouncing on the iPhone 4S affect, KDDI has notched up its revenue target to Y3.55 trillion from a previously projected Y3.46 trillion for the full fiscal year through March and increased its sales target for smartphones to 5.55 million units from 4 million units. However, the telco brought down its net profit forecast to Y235 billion from a previously projected Y250 billion because of the tax adjustments while it continues to forecast a 0.7% rise in operating profit to Y475 billion. The company follows the Japanese accounting standards for basing its earnings.