Apple rumored to be courting ARM Holdings

Rumor

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ARM Holdings, the Cambridge-based company which holds the licensing rights to the majority of processors found in modern mobile devices, is said to be in Apple’s shopping list. Apple, purported to be ARM’s largest customer, pays the company royalties for each iPod and iPhone sold. An unnamed trader speculated to The Evening Standard that Apple would likely offer ARM 400p per share, or £5.2 billion ($8 billion USD). Shares in ARM Holdings closed Wednesday on the London Stock Exchange at 250.5p, up 3.09%. Last April, Apple acquired chipmaker PA Semi for $278 million. Earlier this month rumors began circulating that Apple had bought out the privately owned and Texas-based ARM design firm Intrinsity, a company which built its reputation a upon its energy efficient microprocessors. Many believe that Intrinsity’s acceleration technology plays a key role in the A4 processor found in the iPad. If Apple were to acquire ARM, there is every possibility it could fall victim to an anti-trust legislation as it would be in a position where it could exert undue influence upon its competition which also rely heavily upon ARM. One thing is for certain, almost every mobile device manufacturers is probably sweating at the thought of this actually happening…

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62 Comments
  • Bring Home The Wopper

    I’m a huge Android supporter and I love everything about my Droid (well almost everything). I’m not just a regular end-user, I write apps and kernels so I know my way around the OS. It is absolutely asinine for people to say Apple suck, when the iPhone first came out it was by far the best gadget on the planet. Android wouldn’t exist right now if Apple didn’t create the iPhone. As much as I love Android, I’m looking over my shoulder everyday because I know Apple will come back strong and reclaim their title. It’s inevitable and you’re a fool if you think otherwise.

    • Frank

      I agree with your points. But what does this have to do with the news itself?

    • TypicalAppleHatingDBAG

      Yeah, if you are going to comment on here, it better be either A.) Pro-Android or B.) Apple bashing. So fuck off!

      • Jones

        No, but it should at least relate to the post.

      • Cold Dead Fingers

        If you are going to come on here, it better be either A). keeping your Android BULLSHIT out of Apple related posts, or B) Praising Apple as the dominant company in the Tech world. Bow down like the bitch you are.

      • Norm

        Are you actually asking him to join you in bowing down to an electronics company?

    • Mrwirez

      on topic please

    • Kevin

      @Bring Home The Wopper, P.S, you’re gay

      Sent from my iPhone

  • brum

    Buy ‘em Google, buy ‘em!

  • Nick

    If Apple (or anyone else, for that matter) does indeed buy ARM, the rest of the industry is screwed.

    • Nerdherder

      No mobile phone maker should be allowed to purchase ARM, Apple is looking like MSFT more and more each day. Maybe the EU will one day rule that Apple must be broken up.

  • Link

    Apple is in full scale panic mode over Android.

    They are:

    * Trying to sue cellphone makers like HTC to prevent them from selling Android phones with bogus patent claims

    * Spewing constant FUD about Android with inane garbage like Jobs latest loony ‘porn’ comments

    * Trying to force developers to be locked into only developing for the iPhone with the latests SDK and approval changes

    * And now looking at trying to prevent other cellphone manufacturers from using ARM chips

    Hey Apple, why don’t you try to compete instead of playing these idiotic games. Google and Android are beating the crap out of you fair and square in the market. Android marketshare continues to explode and double every three months while Apple’s marketshare is failling.

    Why don’t you try to make competitive phones built on innovation and hardware features and not hype and marketing?

    • StevenGlansburg

      They could just be trying to make the manufacturing of their products more efficient? Keeping things in house would be a smart route and thus why they might be acquiring ARM .

      Also, you can’t try and discredit Apple by saying they are all hype and marketing when all Verizon did the last half year is hype and market an aesthetically unappealing phone in the Droid.

      • Joe B

        It might be aesteically unappealing but the Droid does do a shitload of things in its first generation that the Iphone won’t until it’s 4th. That says something.

      • Gary

        Yeah, that tacky chrome coloured iPhone and its crappy build quality is a real eye pleaser…

        The Nexus One makes the iPhone look like some cheap and tacky plastic toy.

      • Cold Dead Fingers

        Well, ya, the droid came out after the iPhone 3GS, so naturally it should have better parts, but what you’re forgetting is that ANY company can come up with an Android phone, so the chances of the iPhones specs really holding up against ALL OTHERS is pretty slim. Plus, other companies don’t respect Apple’s ownership of patents, which is Apple’s real defense.

      • Norm

        That’s your opinion glansburg. Take me for example, I’m not a female so the droid was aesthetically pleasing to me.
        You are a female so you like the aesthetics of the iphone, stop being such a sexist, you know there is more than one gender, right?

      • StevenGlansburg

        you brought up gender and must be confused about your own. Aesthetics are not gender related unless you categorize them as such like you did. Apparently you have trouble expressing masculinity and feel that your droid enhances yours. Don’t worry man, I’ve heard some woman don’t care how big your dick is, so you should find someone some day.

      • Norm

        Genital size insinuation, eh glansburg?
        Why don’t you leave that to yourself, the technology site is not the place to be making R-rated comments to other users

    • Bondrock

      When you talk like that you sound like an Ass.
      Apple controls the hardware and is only trying to keep shit developers out of its code.

      The demise of Microsoft is not the OS it is the so called programmers that don’t know shit. They are the ones that cause most of the problems.
      Personally I am happy Apple keeps the level of Dev to higher standards. My iPhone is rock solid and there are more apps available that at the end of the day you have to remember it is just a phone. your not getting married to it.
      sheesh. get a life.

    • Cold Dead Fingers

      You don’t know what the fuck you’re talking about. The iPad outsold the BEST Android phone on the market in just ONE FUCKING DAY HAHAHAHAHAHA. 300,000 units in a 24 hours and the Nexus One……….135,00 units sold…………..in 74 FUCKING DAYS. Apple stock has been rising by the hour, too. Get the fuck out of here, stupid fanboy. I mean, if you’re going to be a fanboy, prick, at least be factual. I’m willing to bet that the next iPhone will outsell the best current android phone, as well as the Evo 4G, which isn’t out yet. What you fanboys always forget is that Android is only relevant, when there isn’t any talk about the iPhone…………and there’s always talk about the iPhone.

      • Norm

        Hey fuck you, you fuckin fuck, fuck this and fuck that. FUCK. Why you gotta be such a fuckstick, you fuckin waste of fuckin space.
        I beat you, I said fuck more,
        Fuck

  • MacMan

    Apples market share going down ? You sir are a moron did you not see the numbers 2Q ? Like or hate them impressive numbers.

    • Gary

      LOL!

      The idiotic Apple fanboy doesn’t even know the latest cellphone market-share numbers…

      Android’s market-share numbers doubled once again over the past quarter.

      Apple’s was flat and is now falling.

      Cry bitch, cry.

      • Cold Dead Fingers

        Hey fuck-tard, How many Android phones released as opposed the the single 3GS, oh ya that’s right. You guys actually think you’re proving something? One Apple phone and a fuck ton of Android’s and it’s something worth noting that Android is finally catching up? HAHAHAHAHA you’ll fit into place once the new iPhone comes out, don’t you worry.

      • StevenGlansburg

        the people bragging about Android on here are teens and tweens I swear. Judging by the amount of youtube related videos related to android phones its all 12-16 year olds talking shit.

  • mommysays

    Apple better not buy any shares of ARM Holdings, that’s fucked up!!!!!!!!

  • TypicalAppleHatingDBAG

    Apple sucks so much. This is more proof. How are they even still in business? Me and all my Fandroid friends on here get all uptight when there is an article about Apple’s earnings success (like two days ago) or when they make a smart business acquisition. I just hate them so much and it makes me feel a lot better to explicitly say they suck. Android rules so much. We have widgets. OMFG WIDGETS!!!!

    • MikeD

      @ypicalAppleHatingDBAG

      Professional Troll huh?

  • nesta cryfily

    I can’t remember when but it has to be like 10+ years ago i owned a boat load of ARM stocks, I call up my broker and tell him to sell it, since we were going to buy a house. A few days later Apple and goes and buys up a HUGE amount of shares and the price skyrockets. Well, i’m crying since i’m like i could have just made over 200k. So, a week passes and my damn check never shows so i call up Oppenheimer and they are like we messed up and instead of putting a sell order in they put in a call option, so long story short i bought the house and still have a boat load of ARM shares.

  • Lo

    I don’t see how “Apple, purported to be ARM’s largest customer”. When Nokia has been using ARM way before Apple, released the iphone.
    Really doubt Nokia sitting back and letting this happen, considering almost all their products run on ARM!!!

  • McHale
    • MikeD

      I highly recommend you worry about Google first. Do the research and stop the stupid emotional behavior.

      • McHale

        You’re right. Apple LOVES competition and would never dream of stomping out competition through petty and ignorant lawsuits or denying other phone manufacturers licenses or products that are essential to their business that they cannot defeat otherwise. Get a clue fanboy. You *DO* realize phones, and particularly SMARTphones existed before Apple made the iPhone, right?

      • MikeD

        This subject you bring up is what separates the emotional babies from the grown ups. Intellectual property is a fact of life.

        All companies can bring a suit to bear if they feel their intellectual property is violated.

        Perfect example is Jay-Z suing David Ortiz.
        http://www.nypost.com/p/news/local/manhattan/jay_clubs_papi_with_suit_GQVLst6bYaQCCvHQSYKP1N

        So grow up. learn what specifically the suit is about and stop the crybaby rants.

      • McHale

        Is this another one of those days you feel compelled to respond to every single negative Apple post? You know that nobody cares what you have to say, right? And I don’t just mean here at BGR.

  • Jones

    I can’t imagine this would past anti-trust scrutiny. Apple is the *last* company that could be trusted to exert this kind of control over the mobile device industry.

  • http://www.metsparadise.com NJMetsHero

    It would be a huge mess if Apple were to purchase ARM in my opinion. How many modern smartphones use ARM processors? Lots and lots.

    • MikeD

      I agree.

      But wouldn’t it also be a mess if Google bought it?

      I think there would be some Anti-trust questions asked if either bought ARM.

  • user

    ARM are fantastic, and they are truly everywhere.

    It would make me feel dirty buying a competitor’s product knowing I have aided Apple, should they purchase the company.

    • (The real Jarrett) Jarrett

      @ user,

      Other than fulfilling contracts, if Apple buys ARM they won’t be selling ARM tech to any companies period. The technology will be inhouse Apple tech just like PA Semi. So you won’t have to worry about feeling dirty. Unless you decide you want to use a user friendly product that is.

      • user

        I’m finding it hard to believe they wouldn’t license it given the prevalence of ARM-licensed chippery out there.

        There are plenty of user-friendly products out there that don’t decide to make the storage and batteries “return-to-homebase” if something goes wrong.

  • History4Losers

    Seems you should have mentioned that apple helped start ARM all those years ago, it’s not like they just picked this company out to gobble up. They were one of the original ARM partners, but dumped the stock to help balance the books when steve came back.

    • MikeD

      Shhhh, don’t tell them. They may dump their ARM based Android devices. LOL

      I’ve know this from day one. I just sit back and laugh at all this emotional responses with lack of knowing history.

  • (The real Jarrett) Jarrett

    Wow, the number of people spewing numbers of all sorts on this thread crack me up. Leave business to the adults please.
    Now, on to this rumor purchase. Buying ARM would be brilliant. Considering that Apple was one of the three companies that banded together to create ARM holdings in the first place (Acorn, Apple and LVSI?) Apple liquidated most of it’s stake in ARM in the late 90′s.
    Being a vertically integrated company this is an obvious “NeXTSTEP” (see what I did there?) for Apple. Since multiples of companies have decided to ride Apple’s market instep (again) it would be great to see Apple put a large foot to the throat of the CE industry by purchasing this company.
    As far as people saying “Android doubled it’s market share this last quarter again”. That is probably true. If you have 17 device running Android one quarter and then 34 devices running Android the next quarter you can actually say that you “doubled” your market share. The problem for Android is something like this post on Gizmodo:
    http://gizmodo.com/5521919/nexus-one-3g-bugs-no-longer-of-interest-to-google
    If you give up after only having a product available for three months it is hard to retain customers to your platform.
    Apple sold almost nine million iPhones last quarter. Tack on another three million or so iPod Touches for a total of twelve million iPhone OS devices. Pretty strong numbers if you ask me. Apple has roughly 90 million OS devices in the wild. Factor in another 15 million this quarter (iPhone, iPod Touch, iPad) and the numbers just seem to snowball. While I am a fan of certain Apple products, I am an even bigger fan of their business model. By the end of this year there will be 140 million iPhone OS devices in the use. Will Android even have 30 million?
    Apple, whether they buy ARM (or AMD) or not will continue to grow at a great clip.

    Revenues for fiscal year:
    FY 09 $46 billion (80 million iPhone OS devices sold to date)
    FY 10 $57 billion (140 million iPhone OS devices sold to date)
    FY 11 $72 billion (260 million iPhone OS devices sold to date)

    Who would have ever thought Apple would get the chance to redeem themselves from firing Steve in the 80′s……….I guess Steve did.

    • Jones

      Wow, you really *love* Apple.

      • (The real Jarrett) Jarrett

        Nope, I love business and money. Apple happens to do these two beautifully. The only companies that do business better that Apple are the Oil companies. Though they are much more boring to follow, occassionally they can be a gas.

      • Norm

        Business and money, yeah right
        You dick ride apple, and apple only

    • Dara

      I bet your music collection is a real blast Jarrett.

      “Here we have the Nickelback shrine, do you know that nobody sells more records than these guys. They took rock music and revolutionized it with their strong design aesthetic. They have such good branding that most people can’t even tell one song from the other. They have absolutely mastered the art of marketing with such coups as being prominently featured in the Spiderman soundtrack”

      • (The real Jarrett) Jarrett

        WOW, I too have a little Nickelback in the library. Although, I wasn’t as familiar with the numbers as you are. To each his/her own I suppose. They really sell more music than anyone else? Amazing. Which Spiderman sound track do they grace? Let me say also that I would have never guessed you were a Marvel guy/girl.

      • Norm

        And drives a camry and tells corvette owners its funner and more aesthetically pleasing because it sold more.

      • (The real Jarrett) Jarrett

        Did you really just say “Funner”? Since automobiles are not an investment that appreciates I wouldn’t be putting money into them. Get a decent running vehicle, when it dies, buy another one.

        Funner, you crack me up.

      • Norm

        It was a hypothetical quote of what I thought you might say, technically neither funner nor more fun is appropriate in formal english, but hey this is bgr.

      • StevenGlansburg

        I’m glad you learned a new word today Norm. But comparing the iphone to a Camry and any android phone to a Corvette is laughable.

    • MikeD

      @(The real Jarrett) Jarrett

      Well this is really going to piss them off.

      As of 4:46 pm today Apple Edges Out Microsoft as #2 in S&P 500

      http://blogs.wsj.com/marketbeat/2010/04/22/apple-edges-out-microsoft-as-2-in-sp-500/

      Nuff said. Talk about comeback of the century.

  • dario

    When Microsoft does something like this it is called a monopoly in the making. when Apples does it you call it a ‘genius’ move by Steve Jobs and innocently dismiss it as ‘quality control’. Sure, quality of their quarterly earnings is more like it.

    Hypocrites. Sheep, your shepherd Steve is calling you.

    • (The real Jarrett) Jarrett

      If by “you”, you are referring to me, try again. I have always pointed out Microsoft’s brilliance (and Apple’s blunder) in putting the OS out there for eveyone to use, as long as the pay the licensing fees. Microsoft didn’t get in trouble for doing these types of things. Microsoft got introuble for charging different vendors different prices according to scale. Vendors are the ones that suffered. They each had to cut costs to compete with one another in the price wars. Microsoft was the big winner. I have always applauded Microsoft for their business brilliance. Trouble is, Microsoft didn’t see this shift coming. Not their fault though, they didn’t see the other shift coming either, their were just very fortuitous in being at the right companies headquarters at the right time. Being a software company (the largest ever) will never make you a technology company.

    • History4Losers

      You really seem confused here, buying a chip company that is just one of many in the field is not the same as forcing people to use your internet browser and tying it to the operating system so that it cannot be removed (among several other things such as crippling software on your platform that competes with your offerings, such as quicktime and realplayer).

      Intel has the ATOM processor as well as several other offerings out there, so it’s hardly a monopoly. Please get a clue, if you need I will loan you a dollar to purchase said clue :)

      • Norm

        I’ve got a raging clue

      • Hugh Janus

        By your stupid logic, then MS should just merge with Intel and shut off macs then right? After all, there is AMD and other chip processors.

        Get the fanboy cloud out of your head. This is anti-competitive behavior. And this is from a person who stuck with Apple from the very beginning.

  • 123abc

    Wow! Some investors want to make money and we are all pushing the rumor mill while they sit back and get rich off of it.

    I bet you that if we looked into the people spreading these rumors, we would find that all of them have shares in ARM Holdings.

  • NuShrike

    This is because of Apple’s need to be entirely integrated. Have a vital part of their device be entirely under the sway of a third-party isn’t acceptable (PPC->Intel->AMD?).

    I rather they just get off the ARM train instead of ruining it for everybody.

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