“Of the two yarns, most investors seemed to think an approach was more likely for ARM, the Cambridge-based technology company which was recently promoted to the top flight,” Urwin reports. “The chipmaker’s shares shot up 8.1p to 251.1p, topping the Footsie winners’ list, as more than five million shares changed hands by midday.”
“Apple is ARM’s biggest customer and speculation is that the iPad maker wants to take chip design in house,” Urwin reports. “‘A deal would make a lot of sense for Apple,’ said one trader. ‘That way, they could stop ARM’s technology from ending up in everyone else’s computers and gadgets.’ Traders reckon a bid would come in at around 400p a share, valuing ARM at more than £5.2 billion.”
Urwin reports, “The takeover speculation was fuelled by stellar second-quarter figures from Apple last night smashing Wall Street’s forecasts. This was good news for ARM even without a bid, because ARM pockets royalties from the sale of iPads.”
Full article here.
MacDailyNews Note: ARM was founded (as Advanced RISC Machines Ltd) as a joint venture between Acorn Computers, Apple Computer and VLSI Technology in 1990. Today, ARM processors are used in almost all modern mobile phones, handheld gaming devices, portable media players, GPS, and many other devices. ARM Holdings (ARMH) currently has a market cap of US$1.9 billion. Debt-free Apple currently has $41.7 billion in cash and short term investments on-hand.
[Thanks to MacDailyNews Reader “James W.” for the heads up.]
ARM or Akamai makes more sense than AMD.
Would they buy both ARM and AMD?
iThink it makes iSense !
Smartest take over for Apple since PA Semi!
‘Gotta catch’em all! Pokemon!’
So does this mean the A4 really isn’t ARM?
This would make perfect sence. Apple can definatly afford this and will have ARM designs all to them selfs. In effect forcing all other electronic makers to use something else. Most mobile chips are based off ARM technology so this would turn the mobile electronic industry upside down. Muhahaha.
@chrissyOne
Exactly the opposite. The A4 is based off ARM tech. Apple just found a way of using it in a powefull low power way.
Well, if Apple can develop and build their own processors and video chips (ARM, AMD), maybe they are planning on buying the Dell facilities in Austin to start assembling computers with imported and domestic parts for a mini-tower with a Light Peak and my God this new medication is really making my mind wander……………………………….Granpa, is that you?
For all the hot air about Apple having a mobile “monopoly”, buying ARM and then cutting off other buyers wouldn’t make much sense. Apple thrives on being the best product in an open market, rather than trying to squeeze out competitors.
“Apple thrives on being the best product in an open market, rather than trying to squeeze out competitors.”
True, but they did buy low-power chip designer PA Semi for a measly $278 million – what Ballmer calls sugar induced coma money. And Google just bought Agnilux run by former PA Semi and Apple employees.
It’s all in Sanskrit.
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/04/21/urnidgns852573C4006938800025770C0056A14C.DTL
That’s funny, TowerTone.
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Would Apple spend 5 billion pounds basically just to cut off its competitors from ARM chips? Hmmm. That’s a big call.
Well, when a Fart_huffer is making the most sense, I’ve either been transported back in high school or I’ve cosmically joined TowerTone’s relatives in the most awesome ribs and baked beans cook off known to planet Earth. Either way it is pretty sweet.
Who says that Apple wouldn’t continue to sell a “street version” of ARM chips to the “other guys”?
OEM work is done all of the time.
BUT knowing Apple. And I do. They want all of the cookies for themselves when it comes to technology use.
The ARM purchase is a very good move – no matter the end results. I do find it interesting that nothing has been mentioned the defection of former execs at PA Semi to Gaggle.. (intentional misspelling).
I hope Apple will have a better non-compete with these guys.
Cheers from Downunder.
I guess this ARM doesn’t have a Radius?
Significant alumni of Radius
Matt Carter (VP Manufacturing) Retired
Alain Rossman (VP Marketing & Sales) Phone.com and OpenWave
Kevin Perera (Designer) CKS and Pillar Data
Steve Lemke (Engineer) Palm Computing
Ed Colligan (Director, Marketing) US Robotics and Palm Computing
Lisa Grenier (Sr. Lead Engineer) Sun Microsystems
Dominique Goupil (VP, International Sales) FileMaker
Andy Hertzfeld
Burrell Smith
Ron Marianetti
Robert Jasman
David Burnham
Hage van Dijk
Yes, that was meaningless. I just like to keep Andy Hertzfeld
and Burrell Smith relevant however possible. They are so much of the Mac you love.
@ Fart_Huffer: Naw, the A4 is a Power architecture chip that virtualizes an ARM processor.
Don’t like the idea. But a wholly-owned subsidiary maybe. Keep selling product to the competitor and pay the Apple treasury back faster.
“But a wholly-owned subsidiary maybe.”
Like FileMaker.
US regulators may allow it, but EU regulators wouldn’t. Wouldn’t ever want a business to innovate, grow, and create too much, eh?
Ampar
That correct. Can silverhawk be an analyst for the balance of the day?
It’s gonna cost Apple an Arm and a leg if they miss this one.
No need to “buy” AMD. Good investments and collaboration will be far enough.
No way, this rumor is rubbish. Apple won’t waste their money on an acquisition only to kill their sales to customers. Plus, that would really raise the antitrust hackles, justified or not. Apple is perfectly happy licensing ARM designs that they can modify for their special purpose.