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

By - Source: Tom's Hardware US | B 24 comments

ARM Holdings' CEO is playing down earlier reports that Apple could make a bid for the company.

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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Top Comments
  • 17 Hide
    Tomtompiper , April 23, 2010 3:09 PM
    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.

Other Comments
  • 17 Hide
    Tomtompiper , April 23, 2010 3:09 PM
    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.

  • 1 Hide
    crom , April 23, 2010 3:41 PM
    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.
  • Display all 24 comments.
  • 2 Hide
    jerfle , April 23, 2010 3:42 PM
    "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 Hide
    ta152h , April 23, 2010 3:52 PM
    It would be kind of ironic. Apple's first computers were based on the 6502 processor, ARM based some of their design on the 6502.

    But, there's one question to ask - does Apple really want to compete against Intel????? Does anyone, besides IBM maybe, want to compete against Intel? Ask AMD how easy it's been the past few years.

    If Apple wanted to do their stuff in house for their small devices, they could just start from scratch. Too many people have licenses to ARM, and at any rate the instruction set is old.

    None of this makes any sense. Why would Apple want them? To be proprietary, they can't buy a company that licenses and has licensed their processor designs. If not, then just license it, it's a lot cheaper.
  • 4 Hide
    zoemayne , April 23, 2010 4:04 PM
    SHIT 41 BILLION
  • 0 Hide
    zoemayne , April 23, 2010 4:07 PM
    If apple would do that than they would have to surpass AMD and Intel which is gonna take alot.
  • 8 Hide
    bogcotton , April 23, 2010 4:14 PM
    zoemayneSHIT 41 BILLION


    All donated faithfully by the church of apple followers.

    It does say something about how unfairly a company is pricing its products when you hear about 41% profit margins and cash reserves of 41 billion.

    I suppose the price does help keep a lot of people out of considerable danger of viruses, if they were priced at the same level, tech for tech, as PCs, more people would buy them, and the internet would become a complete web of traps for macs.
  • 1 Hide
    kelemvor4 , April 23, 2010 4:34 PM
    bogcottonI suppose the price does help keep a lot of people out of considerable danger of viruses, if they were priced at the same level, tech for tech, as PCs, more people would buy them, and the internet would become a complete web of traps for macs.

    I don't think that's got much to do with it. Apple has such a small market share that it's just not as lucrative a target for hackers. If apple ever gets a serious chunk I'm sure you'll start seeing apple worms a plenty.

    On a side note, apple owners are probably all broke from giving all their money to apple; so what's left to steal from them?
  • 4 Hide
    hellwig , April 23, 2010 4:53 PM
    kelemvor4On a side note, apple owners are probably all broke from giving all their money to apple; so what's left to steal from them?


    Apple owners seem to be high in resources and low in common sense. Kinda like athletes, music artists, actors, a politicians. As long as they have money, they don't care what they spend it on.

    I seriously doubt Apple would buy ARM. ARM has a lot of customers, and a lot of technology. I don't understand why Apple would want to pay money for a company that does most of their business with other people. Seriously, why buy a whole dairy when you only need one cow?
  • 3 Hide
    eyemaster , April 23, 2010 5:18 PM
    Did we already forget about the news that mentioned Apple looking at possibly using AMD for their next cpu?
  • 0 Hide
    schmich , April 23, 2010 5:38 PM
    A lot of talk for nothing. Neither the FTC nor the EU (if required) would allow it.
  • 0 Hide
    digitalrazoe , April 23, 2010 6:28 PM
    5 year wait out for license to expire... buy ARM would spell the end for many devices that use it .. just like Apple putting Final Cut Pro for Windows ( or linux for that matter) in the coffin .. Logic for Windows died with the acquisition of that company .. an now a processor company ? I think the apple is giving birth to a worm.
  • 0 Hide
    ta152h , April 23, 2010 6:50 PM
    The surprising thing is the Apple investors aren't demanding a dividend with all that money. 41 Billion is a lot of money to be sitting on for a rainy day. If I were an investor, I'd be pretty annoyed that I wasn't getting some of that in a dividend. What else are they going to do with it? 41 Billion is so much. Maybe they'll start their own financing company or something, which would make next to no sense. Still, it makes more sense than just sitting on it.
  • 0 Hide
    Anonymous , April 23, 2010 7:40 PM
    Quote:
    ARM: It Wouldn't Make Sense for Apple to Buy Us

    Exactly! Everybody already knows Acorn Computers invented the ARM chip and not Apple. Why would Apple want to buy ARM if everybody knows that?
  • 1 Hide
    duzcizgi , April 23, 2010 8:42 PM
    And thinking that Google Android also runs on ARM, there'll be counter bids, if ever Apple tries to buy ARM.
  • 1 Hide
    reklatsa , April 23, 2010 9:41 PM
    zoemayneSHIT 41 BILLION


    That's, er, $12 billion less than Bill Gates' personal wealth.

    Profit made from Windows shills.

    Apple already own shares in ARM, they helped finance the ARM from the start. They used to have a larger share holding before Jobs' restructuring of Apple assets.
  • 0 Hide
    3ul , April 24, 2010 5:03 AM
    hellwigApple owners seem to be high in resources and low in common sense. Kinda like athletes, music artists, actors, a politicians. As long as they have money, they don't care what they spend it on.I seriously doubt Apple would buy ARM. ARM has a lot of customers, and a lot of technology. I don't understand why Apple would want to pay money for a company that does most of their business with other people. Seriously, why buy a whole dairy when you only need one cow?


    This is Apple we talking about, or more accurate Steve Job. Did't you get the idea??
  • 0 Hide
    Anonymous , April 24, 2010 11:44 AM
    Even here in Crappy interest rate England, that is nearly 200,000,000 earned a month interest, hell, promise it is not just sitting on its 41 Bil, its earning a very very nice income from it without having to lift a finger!!!
  • 0 Hide
    JohnMD1022 , April 24, 2010 11:53 AM
    "On a side note, apple owners are probably all broke from giving all their money to apple; so what's left to steal from them? "

    Obama has a plan to get the rest.

    "If you make less than $250,000 a year, your taxes will not increase by one dime. What's that? Oh, $25,000. Huh? Oh, ok, yes... $250."
  • 0 Hide
    virtualban , April 24, 2010 8:43 PM
    how do I report a comment for removal instead of just thumbs down for disappearance?
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