Apple strong ARMing the competition
By Wilson • Apr 23rd, 2010 • Category: Industry News
- Photo: ARM
With Adobe giving up on its crusade to find a solution to let Flash developers publish iPhone apps, Apple effectively said ‘No, Adobe, you lot go screw yourselves.’ Now, if the rumour that Apple is considering purchasing ARM is true, then let it be known that Apple is saying ‘screw all of you’ to nearly every mobile device maker in the world.
Chips up
The ARM processor chips power a large portion of the mobile devices market. HTC smartphones, Nokia handsets, Archos tablets, PSP, Nintendo DS, and several other mobile devices are part of ARM’s current client base.
To share or not to share
- Photo: Apple
It’s unlikely Apple would stop licensing ARM processor chips to other mobile device makers just to spite them. Instead, what you will likely see is a price increase in licensing fees, which manufacturers can either take or leave. In doing this, every time most smartphones are sold, Apple will make some money off of it. This effectively hedges their bets in the mobile devices market, where they would be selling both their own products and contribute to the products of others. It’s good business.
The price of control
It is suspected the ARM acquisition would cost over £3 billion, representing a massive bet for Apple. Considering the company has over £30 billion in cash sitting in the bank, even if the bet fails, Apple won’t be wanting for money.
What’s really important is this rumoured move is all about control. Jobs could give the whole tech industry a slight heart attack. And he would put Apple in an enviable position. However this move may not pass regulatory clearance. If Apple did want ARM, and regulators approved the move, and an equivalent chip manufacturer struggled to scramble to replace ARM, this would be a gated network more significant than the App store because it would affect everybody.
This is pure rumour, let that be clear. But if true, it’s difficult to even imagine the enormity.
Tags for this article: apple, arm processor
