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ARM announces bumper profits after one billion chips are shipped

Toys with Intel
Tue Jul 26 2011, 18:04

CHIP DESIGNER ARM has produced bumper revenue and profit for its second quarter of 2011 and revealed that it has sold 29 additional ARM licenses.

ARM, which licenses its architecture to firms such as Broadcom, Qualcomm, Samsung and Texas Instruments, announced that it rang up £117.8m in sales for the second quarter, up 18 per cent from the same period last year. That resulted in a profit of £54.2m, an increase of 25 per cent.

ARM also announced that it has signed 29 licensing agreements, specifically nine for the Cortex A-series, two of which are for its Cortex A15 designs for use in server infrastructure and mobile computing applications, while 12 licenses are for its Cortex M controller chips typically found in storage applications.

Financial figures fail to tell the complete story of ARM's second quarter. During the quarter, 1.1 billion ARM chips were shipped in mobile phones and tablets and a further 800 million ARM chips were shipped in consumer electronics. Although ARM itself doesn't fab these chips, these figures are truly staggering and show just how big the embedded market is.

ARM expects reduced growth in the next quarter, however there's no doubt that the figures show that it's taking full advantage of the smartphone and tablet boom. Little wonder then that Intel wants to get in on the market. If ARM can make this much cash from just designing chips, one can only imagine how much Intel would rake in if it could take 15 to 20 per cent of ARM's business. µ

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Comments
No loss for Intel really

Intel's not actually losing anything as they don't (yet) compete in this market. The reason they want into it as has been shown, ARM account for over 1bn CPU's, and if Intel can get some of that, than it's well worth the benefit of competing against ARM. The only issue is, can Intel produce a CPU that competes with the ARM's on performance which is cheaper for a licensee than it is to make them themselves. If yes, Intel has a chance to get a slice of the cake.

posted by : Nya, 27 July 2011 Complain about this comment
Ouch

Intel must be losing a ton of cash to Arm in lost sales. Don't matter how much Arm makes, its how much Intel is losing that will hurt the most.

posted by : craig, 27 July 2011 Complain about this comment
@Steve T

40% is noce figure, but a couple og billion profit beats 100 million unless my maths has regressed , so again why is it work intels time? its chump change

posted by : LPF, 27 July 2011 Complain about this comment
ARM x86

Intel ships less than half a billion chips _per year_, so ARM volumes vis-à-vis x86 are now up to 8:1. I thought they were only 4:1 last year, which shows you how wildly things are growing.

Which is probably why Intel and Microsoft are getting so desperate.

posted by : Lawrence D'Oliveiro, 27 July 2011 Complain about this comment
@LPF - yes you are missing something

ARM DIDN'T sell 1.1Bn examples of their designs, they LICENSED the designs (many of them old, simple versions used for embedded controllers) to third party companies.

ARM have no manufacturing costs, no stock costs etc. All they do is collect licence fees and work on new designs, which they can do out of an ordinary office building. They make about a 40% profit margin, which is better than Intel. On that basis £100M is pretty good.

posted by : Steve T, 27 July 2011 Complain about this comment
Sorry but maybe I'm missing something

But you sell 1.1 billions examples of your design and you make only £100 Million roughtly??

Thats peanuts.. apart from bragging rights why would Intel both with this nickel and dime business ??

If Arm where making like 300 Million then maybe, but as it is its chicken feed

posted by : LPF, 27 July 2011 Complain about this comment
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