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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.

  • 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.

    Reply
  • 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.
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  • 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.
    Reply
  • ta152h
    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.
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  • zoemayne
    SHIT 41 BILLION
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  • zoemayne
    If apple would do that than they would have to surpass AMD and Intel which is gonna take alot.
    Reply
  • bogcotton
    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.
    Reply
  • kelemvor4
    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?
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  • hellwig
    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?
    Reply
  • eyemaster
    Did we already forget about the news that mentioned Apple looking at possibly using AMD for their next cpu?
    Reply