ARM: It Wouldn't Make Sense for Apple to Buy Us

On Wednesday there were rumors of Apple's possible takeover of UK chip designer ARM Holdings. The gossip ignited after Apple announced that it was sitting on a cash reserve of $41.7 billion. As reported by the London Evening Standard, the speculation stems from Apple's desire to bring chip design in house rather than farm out the business to the external chip manufacturer.

The Guardian today reports that as shares jumped to an eight-year high, the chief executive of ARM Holdings, Warren East, played down the reports and reminded people that it's much cheaper for Apple to license ARM technology instead of purchasing the company.

"Exciting though it is to have the share price pushed up by these rumors, common sense tells us that our standard business model is an excellent way for technology companies to gain access to our technology. Nobody has to buy the company," East told the Guardian.

East makes a fair point but it's far from a solid denial that Apple is making a bid for the company. Just because it can license the technology for a fraction of the cost, that doesn't mean Apple wants everyone else to do the same. If the company is interested in something exclusive, an acquisition would be the only way to go.

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  • Tomtompiper
    The thought of the most successful microprocessor company in the world being bought by a mere computer manufacturer gives me the Shivers. I hope Warren is correct and Apple is not looking to buy.
    17
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  • Tomtompiper
    The thought of the most successful microprocessor company in the world being bought by a mere computer manufacturer gives me the Shivers. I hope Warren is correct and Apple is not looking to buy.
    17
  • crom
    It won't happen. People already have the ARM licenses that go out for at least 5 years or more. It won't lock people from using the technology. And even if, in the off chance, that they do decide to buy ARM, the length of these licenses gives others to develop their own technologies like Nvidia.
    1
  • jerfle
    "played down the reports and reminded people that it's much cheaper for Apple to license ARM technology instead of purchasing the company"

    Ask AMD how much money is needed for all in house chip manufacturing. The fab plants almost up ended them.
    2