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Shares of ARM Jump Again After Rumors of Apple Takeover Resurface

Reuters reports that shares of ARM Holdings jumped as much as 32% today on renewed rumors that Apple is looking to take over the company. It is unclear exactly what triggered the new round of speculation, as the rumor first surfaced in earnest in late April.

At the time, ARM dismissed the rumors, arguing that such an acquisition makes no sense given ARM's business model. And with respect to the latest rumors, an ARM spokeswoman again denied that it had been approached about a takeover.

"Hearing (an) old rumour that Apple want to bid for them," said one trader.

A spokeswoman for ARM said the chip designer had not received an approach, and said a takeover from Apple would not make sense, reiterating comments made by its CEO Warren East in April and its President Tudor Brown last month.

ARM is the chip design firm that provides the basic platform for Apple's mobile chips used in the iPhone, iPad, and iPod touch, as well as numerous other mobile devices from a broad array of manufacturers. ARM does not produce the chips itself, however, choosing instead to license its designs to chipmakers for modification and production.

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26 months ago
Well at one time Apple did have quite a big chunk of ARM stock since they were part of the ARM alliance.
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26 months ago
After buying ARM shares a few years ago just before the value tumbled I say keep these rumours coming so I can get my money back! They were up 10% this morning.
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26 months ago
It might not be in ARM's business model that it needs Apple to purchase them, and it would be unlikely to directly benefit ARM, however the benefits to Apple are huge.

- Being able to tailor designs to the requirements of their products
- Having processors optimised for iOS and OS X platforms (especially power management)
- Control over which competitors get what technology (although anti-trust would certainly be an issue)
- Optimise designs so that processor packaging (i.e. size and shape of the final product) suit the internal designs of their products where space is very limited (iPhones / iPod Touches)
- create high speed interconnect technologies between processor, graphics, memory, IO, etc

It would however be a surprising move by Apple, and as likely as Apple buying Foxconn.
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26 months ago
What is more likely than a buyout is a license carve-out where ARM exclusively designs chip components or systems that do tasks tailored to Apple's needs.

Rocketman
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26 months ago
I have been a little confused about the following. And based on this thread I am more confused. Does the following mean Apple designed the A-4 chip but someone else makes it like ARM or does ARM just get a royalty. Can someone clarify?

"Apple engineers designed the A4 chip to be a remarkably powerful yet remarkably power-efficient mobile processor. With it, iPhone 4 can easily perform complex jobs such as multitasking, editing video, and placing FaceTime calls. All while maximizing battery life."
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26 months ago
I got it at $8.64 I wanna know if I should sell on this news, or hang on to it and hope for an aapl takeover? I'm so confused, I could use the cash but don't want to be burned later:confused:

edit: i sold
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26 months ago

I have been a little confused about the following. And based on this thread I am more confused. Does the following mean Apple designed the A-4 chip but someone else makes it like ARM or does ARM just get a royalty. Can someone clarify?

The A4 chip was primarily designed by ARM, slightly modified by a company called Intrinsity which was recently acquired by Apple (hence apple's claim to have designed the chip) and by Samsung. It is manufactured by Samsung.

Apple doesn't have the necessary know-how to make such products. It's all marketing.
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26 months ago

I got it at $8.64 I wanna know if I should sell on this news, or hang on to it and hope for an aapl takeover? I'm so confused, I could use the cash but don't want to be burned later:confused:

edit: i sold


I'd have done the same.
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26 months ago
Step one: Buy shares in popular tech company with lower than normal shares

Step two: Start rumour about Apple buying said company out and spread to aggrigate sites like Digg.

Step three: There's no step three!

...and you all thought I was doing the PROFIT!!!! meme!
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26 months ago

...and you all thought I was doing the PROFIT!!!! meme!


The profit-meme needs a step with a question mark. ;)
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