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  • ARM Shares Surge as their Chips Help to Power New 64-bit Smartphones in the Market


    The revenue of the British chip designer, ARM Holdings, recently rose 22% to 227.5 million pounds ($339 million) in the first quarter of 2015. This is attributed largely to the 64-bit smartphones such as the iPhone 6 and the newly-shipped Samsung Galaxy S6 according to a recent report from Bloomberg. This amount exceeded the average analyst forecast of $335 million as well.

    In a recent call with reporters, ARM CFO Tim Score mentioned that royalties were up because of “very, very high market share” in new smartphones. In an official statement provided to Bloomberg, ARM did warn everyone that it expects a sequential drop in industry revenues but that this is consistent with seasonal trends. Many new smartphones are typically announced at the Mobile World Congress in March but launches then tend to die out until the fall with Apple shipping its new iPhones in September.

    Although many devices such as the iPhone 6 and Galaxy S6 are custom processors, both are based on licensed ARM architecture. In turn, both Apple and Samsung have to pay out but this lets the companies devote more time and resources to optimizing their chips. Furthermore, ARM’s performance may be another sign that the iPhone 6 and iPhone 6 Plus have continued to sell well months after its launch. Just earlier this month, recent data from the Kantar Worldpanel ComTech showed that by February, the iPhone 6 was the best-selling smartphone in China and the UK, even if Android devices enjoyed greater global marketshare.

    We’ll have to wait and see how the other quarters turn out.

    Source: Bloomberg
    This article was originally published in forum thread: ARM Shares Surge as their Chips Help to Power New 64-bit Smartphones in the Market started by Akshay Masand View original post
    Comments 2 Comments
    1. psxcancer's Avatar
      psxcancer -
      Wow, that is surprising that Samsung would pay another chip manufacturer to make their chips.
    1. RandyTG's Avatar
      RandyTG -
      Quote Originally Posted by psxcancer View Post
      Wow, that is surprising that Samsung would pay another chip manufacturer to make their chips.
      Samsung still makes the chips themselves. What they are paying royalties on is the architecture of the chip itself. ARM just creates the chip architecture designs and other vendors license the designs.