Smartphone Drives Double Digit Growth at ARM
ARM is benefiting from the smartphone craze with more than 2.2 billion ARM chips shipped in the third quarter.
The company reported revenue of $227.9 million for Q3, up from $192.3 million in the same quarter last year. Earnings before tax climbed by 22 percent from $88.7 million to $108.5 million. ARM announced that it signed 29 new processor licenses during the quarter, which includes one new ARMv8 architecture licensee, one ARMv8 processor licensee and one Cortex-A15 processor licensee. The identities of the new customers were not revealed.
As the PC industry is struggling with doubt regarding product demand, ARM said it is starting "the final quarter of 2012 with record order backlog" and a "moderate sequential increase in ARM's royalty revenue in Q4."
The majority of ARM's revenue is based on royalty income, which was $121.1 million in Q3, up 25 percent year over year. License revenue climbed by 15 percent to $83.4 million, while development system, sales amounted to $12.1 million, up 3 percent over 2011. Service revenues were $11.3 million.
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joytech22 2.2 Billion ARM chips?Reply
What? I estimate about 500 million people own at least 3-4 ARM devices in their households. (TV's, Phones, set top boxes etc..)
Times that up.. Err.. I guess that would be about right I think. :| (If you add in the people with 2 or less ARM devices in the household)
Wow, that's a LOT of chips. -
somebodyspecial I thought they were bigger. Dwarfed by all the companies who use their tech to make socs etc. Seems like they're charging too little (not that I'm going to complain about a decent priced smartphone if I ever buy one...LOL). Let me know when plans get to all you can eat and I don't have to pay for crap I don't want. Then I'll purchase a smartphone :) $80-110 a month is retarded. I may cough up for a TING plan shortly but I can wait for Tegra4 easily.Reply -
JeanLuc somebodyspecialI thought they were bigger. Dwarfed by all the companies who use their tech to make socs etc. Seems like they're charging too little (not that I'm going to complain about a decent priced smartphone if I ever buy one...LOL). Let me know when plans get to all you can eat and I don't have to pay for crap I don't want. Then I'll purchase a smartphone $80-110 a month is retarded. I may cough up for a TING plan shortly but I can wait for Tegra4 easily.Reply
They only produce IP they don't actually make anything tangible which means they can make a lot profit from there turnover. Compare the profits ARM are making to what AMD have just announced in their recent earnings call and then it just shows how impressive ARM are doing.