ARM Announces Record Profits, Dismisses Rumors of Apple Takeover

212236 arm logo

The Daily Telegraph reports that ARM Holdings, the design firm behind the processors used in Apple's iPhone OS devices and the subject of recent rumors that Apple might be looking at an acquisition, has announced record sales, revenue, and profits for the first quarter of 2010. In particular, chief executive Warren East cited the iPhone and its stimulation of the entire smartphone industry as key drivers for ARM's growth, and pointed to the iPad as another opportunity for the company.

"The iPhone acted as a great stimulus to encourage competitors to develop products to beat the iPhone," he said. "The iPad looks like it has set the competitive bar again, and will stimulate people to do a lot of other creative things."

The report also notes that East "dismissed" the rumors of an Apple buyout, following up on comments he made last week arguing against the need for Apple or any other company to make an acquisition.

Research firm iSuppli yesterday also released its own fact sheet on the Apple-ARM situation, outlining several reasons why an acquisition of ARM makes little strategic sense for Apple.

"Just because ARM's IP plays an important role in mobile devices, that doesn't necessarily mean ARM is of strategic value to Apple," said William Kidd, director and principal analyst, financial services for iSuppli. "iSuppli thinks ARM would represent a costly acquisition with little in the way of true strategic benefits. The acquisition would not give Apple's products a competitive edge/differentiating value. iSuppli also doesn't buy into prevailing speculation that there could be significant value in denying other competitors access to ARM's IP, since the majority of the impact would be felt by companies like Broadcom, Samsung and Texas Instruments, which are not exactly Apple's biggest rivals. In any case, there would be no visible end-market impact seen for two years at a minimum.

iSuppli also expects that other bidders would be likely to appear should Apple make a serious effort at acquiring ARM, as many chipmakers rely on ARM's technology, which would be difficult, time-consuming, and expensive to shift away from, and fear Apple's "inward-looking corporate style" could inhibit the freedom they currently have to work off of ARM's designs.

Related Stories

General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
iphone 13 teal with text

Apple Begins Preparation for iPhone 13 Production Ahead of Fall Launch

Monday June 28, 2021 3:29 am PDT by
We're just a few months away from when Apple is expected to reveal the 2021 iPhone, dubbed the "iPhone 13." In preparation for its launch, it has been pulling in shipments of different components needed to produce the new iPhones, according to a report from DigiTimes. In years past, Apple released its latest iPhone lineup, alongside a new Apple Watch, during a September event at Apple Park....
studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
bluetti eb70 main

MacRumors Giveaway: Win a Bluetti EB70 Portable Power Station and 200W Solar Panel

Friday September 3, 2021 11:13 am PDT by
For this week's giveaway, we've teamed up with MAXOAK to offer MacRumors readers a chance to win a Bluetti portable power station and an accompanying solar panel. Bluetti makes a range of portable power station options that are useful for camping, emergencies, power outages, off-grid living, and similar situations. The Bluetti EB70 is a solid middle of the road option that offers 716Wh and...
apple privacy

Apple Publishes FAQ to Address Concerns About CSAM Detection and Messages Scanning

Monday August 9, 2021 1:50 am PDT by
Apple has published a FAQ titled "Expanded Protections for Children" which aims to allay users' privacy concerns about the new CSAM detection in iCloud Photos and communication safety for Messages features that the company announced last week. "Since we announced these features, many stakeholders including privacy organizations and child safety organizations have expressed their support of...
macos catalina legacy system extension alert

Apple Begins Warning Users That 'Legacy System Extensions' Won't Work With a Future Version of macOS

Wednesday March 25, 2020 9:53 am PDT by
Apple has shared a new support document that indicates kernel extensions — which it calls "legacy system extensions" — will not be compatible with a future version of macOS because they "aren't as secure or reliable as modern alternatives."System extensions are a category of software that works in the background to extend the functionality of your Mac. Some apps install kernel extensions, which...
General Spotify Feature

Spotify Pauses Plans to Add AirPlay 2 Support to iOS App [Update: Spotify Clarifies]

Friday August 6, 2021 9:07 am PDT by
See update at bottom of article Spotify this week confirmed that its plans to add AirPlay 2 support to its iOS app have been placed on indefinite hiatus. In an online discussion forum post, a Spotify representative said the streaming music service had been working on supporting AirPlay 2, but the company has paused the efforts "for now" due to "audio driver compatibility issues." The...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
os x mountain lion macs 16x9 2

Apple Makes OS X Lion and Mountain Lion Free to Download

Wednesday June 30, 2021 12:19 pm PDT by
Apple recently dropped the $19.99 fee for OS X Lion and Mountain Lion, making the older Mac updates free to download, reports Macworld. Apple has kept OS X 10.7 Lion and OS X 10.8 Mountain Lion available for customers who have machines limited to the older software, but until recently, Apple was charging $19.99 to get download codes for the updates. As of last week, these updates no...
Pixel Stand 23W 668x445

Google Pixel 6 Rumored to Support 23W Wireless Charging, Beating iPhone 12's MagSafe

Wednesday September 1, 2021 1:54 am PDT by
Google is rumored to be working on a new wireless charging stand that could deliver 23W of charging power to its upcoming Pixel 6 and Pixel 6 Pro phones, according to a leaked inventory image published by Android Police. Image via Android Police. If true, that would beat the iPhone 12's maximum 15W wireless charging speed (or 12W on ‌iPhone 12 mini‌) using Apple's MagSafe charger, and...