Linked by Thom Holwerda on Thu 22nd Apr 2010 09:22 UTC, submitted by REM2000
In the News Well, you can classify this under the double-you-tee-eff header. There is rampant speculation in London's financial district that Apple may be planning to buy ARM, the processor design company many of us have a soft spot for. Shares of ARM went upwards quickly when the speculation started, making it the biggest winner of London's FTSE.
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Erm, reality bites
by flibble on Thu 22nd Apr 2010 11:51 UTC
flibble
Member since:
2007-05-19

This isn't going to happen.

Apple Iphone sales (8.8 mill in one quarter) represent such a tiny part of ARMs sales (~1 billion per quarter), that Apple success or failure should be pretty much irrelevant to the share value of ARM.

For Apple to gain a controlling stake in ARM, they'd need 50% (plus a little bit) of the shares, which is currently valued at 1.6 billion UK pounds. ARM currently turns (in 2009) of 100 million UK pounds. So assuming no growth in profit (big assumption) it'd be 16 years to see a return on that investment, big companies (and their investors) don't really like working on that timescale.

Also this entirely discounts the possibility of ARMs current licenses (100+ of the worlds largest electronics companies) banding together to form a consortium to outbid Apple and keep their current very nice license terms.

More likely Apple will either buy a license for the latest ARM cores and design their own SoC for new products or buy a company that already specialises in that. Much cheaper and will bring them the same results.

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