Apple to buy ARM for $8 billion?

This article contains unofficial information.
Apple to buy ARM for $8 billion?
In a move that would change the face of mobile technology as it currently stands, Apple is rumored to be in talks to purchase Cambridge, U.K. based chip manufacturer ARM for $8 billion U.S. The report is coming from U.K. newspaper the London Evening Standard. ARM supplies chips for Apple's iPhone, iPod and the new A4 chips in its iPad. Other firms that rely on ARM are Nokia, BlackBerry, and Microsoft. Android phones made by Motorola and HTC also use ARM chips. In fact, most tech products smaller than a netbook rely on the company to supply them for products like routers, the Sony PSP and Nintendo DS. While $8 billion is not exactly pocket change for most companies, for Apple it is just one-fifth of the $40 billion in cash and short term investments the company lists on its latest balance sheet. For Steve Jobs and crew, the trickiest part of the deal might be obtaining the necessary government clearances that could block the completion of an acquisition. Apple and Jobs might have burned some important bridges lately. Ironically, Apple was one of the companies that formed ARM back in November 1990 as a joint venture between the Cupertino firm, Acorn Computers and VLSI Technologies. The initials stand for Advanced RISC Machines Ltd. In the next 24 hours, you can expect to hear opposition to the deal from other computer companies worrying that they will lose a steady supply of important parts for products that compete with Apple. However, the latter firm is ARM's largest customer and it does make sense for Apple to try to bring chip production in-house. One trader says that a deal would make sense for Apple because, "that way, they could stop ARM's technology from ending up in everyone else's computers and gadgets."

source: LondonEveningStandard

FEATURED VIDEO

25 Comments

1. ajac09

Posts: 1482; Member since: Sep 30, 2009

say no uk please say no!

2. cj100570

Posts: 204; Member since: May 12, 2009

If this is indeed true it's DOA. It'll never pass muster in the EU and I'm sure it'll never make it here in the US either.

21. PapaJay224

Posts: 866; Member since: Feb 08, 2009

Isn't it funny Apple might buy ARM.... and it costs and Arm to buy anything Apple....weird...looks like ill be investing in LEG.

3. ilia1986 unregistered

YES!! This is awesome.. Apple will become even stronger then before! :D

15. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

I wouldn't count on this happening, they will run into too much opposition.

4. modernkoro

Posts: 25; Member since: Jan 27, 2010

EVERY PHONE MANUFACTURER USES ARM CPU. IF EVIL APPLE ACQUIRED ARM, APPLE ABSOLUTELY WILL NOT ALLOW COMPETITORS TO USE ITS CPU. AND SIMPLY THINK ABOUT THE FUTURE OF MOBILE PHONE INDUSTRY. THE TECHNOLOGY WILL GROW VERY SLOWLY. COMPETITION IS NOT GOOD FOR BUSINESS, BUT IT IS GOOD FOR US, "CONSUMERS".

12. JackFace

Posts: 190; Member since: Nov 03, 2009

Restrictions restrictions restrictions... need I go on?

22. PapaJay224

Posts: 866; Member since: Feb 08, 2009

I'm thinking Steve Jobs was talking and surfing at the same time trying to figure out how to multitasking and almost accidently bought a company. Good thing for spotty AT&T Coverage his call dropped before he could complete the transaction.

5. mcmkone

Posts: 54; Member since: Mar 24, 2009

These Apple fan boys have no idea what a move like this would do to the industry... stop looking at the short term however look at the long term effect it could have on the industry, however it could actually back fire on apple as all the main companies which use ARM for chips have deep pockets and might form a new chip company of their own that will completely blow ARM away... the old saying goes you can buy a company but that doesn't mean you've bought the people, with out people to drive your company forwards what do you have???

6. liquidmonkey unregistered

although competition is good this would be a downright monopoly and would NEVER be allowed by any sane over sight committee. nice try cr@pple. interesting how this comes at a time when HTC has caught up and beaten the $hitPhone.

7. Nickmfnjackson

Posts: 101; Member since: Jan 21, 2010

aww come on apple... Buy the company so you can release 2 devices every 3 years as opposed to the 30+ that come from all the other collective manufactures? You guys really dont like anyone else to have good things, huh?

8. Mateo8326

Posts: 472; Member since: Jul 15, 2009

They gonna take the $8 billion you'd be a fool not to....apple could buy the rights to all apple trees in the world if they wanted to lol

16. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

It's not just about money...the gov won't allow this to happen.

24. Mateo8326

Posts: 472; Member since: Jul 15, 2009

Sure the gov will if they wouldn't this whole article would be null and void

25. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

How do you figure? Especially when it says " This article contains unofficial information".

9. nak1017

Posts: 328; Member since: Jan 08, 2010

If this goes through, I predict a big change in Intel's road map...

10. remixfa

Posts: 14605; Member since: Dec 19, 2008

This would be rediculous if they allowed apple to do so. It would be in direct violation of monopoly laws. Of course, with obama as president, the laws dont seem to matter much, so it will probably happen. Maybe apple will make a million dollar illegal donation to obama the way goldman sachs did. of course, this would depend on which % of chips ARM supplies the world of cellphones and gadgets with. There is also the Snapdragon and other processors out there. ARM does more middle of the road stuff... so this move could just force companies to use more high end snapdragons (which are going to 1.5gh this year not like the .6gh ARM the iphone runs on) and whatever else comes out, and totally backfire on Apple.. which id die laughing :)

11. jrcrow79

Posts: 477; Member since: May 02, 2008

lol..sounds like an MS domination move!

19. zerglisk

Posts: 544; Member since: Feb 09, 2010

well, if Apple is starting to act like MS, we all can foresee the future of Apple.

13. matt1q2aw3 unregistered

Won't pass molopoly laws

14. zerglisk

Posts: 544; Member since: Feb 09, 2010

$8 billion is an insult for the future potential of ARM. ARM needs to be smart enough about this and not letting Apple to do the evil decision. Apple just gets really greedy now... maybe that's why I am gradually sailing away from Apple

17. iHateCrapple

Posts: 734; Member since: Feb 12, 2010

+1 for the last sentence!

18. dyster

Posts: 63; Member since: Mar 31, 2010

If it does happen, Samsung just will have to crank up production for their chip which is crazy fast. This still stinks...

20. wade1968

Posts: 224; Member since: Apr 12, 2010

htc and other phone companys that use arm chips will have no choice but to make there own chip manufacturer cause you know if apple buys arm they will say if its not an apple product you will get the slower chips then our products and they probly will suck all the life out of the batteries battery life.

23. networkdood

Posts: 6330; Member since: Mar 31, 2010

This just in from FIERCEWIRELESS.com: ARM Holdings dismissed recent market rumors that Apple (NASDAQ: AAPL) might be considering a bid a for the company. The rumors, which first began circulating in the London Evening Standard, said Apple was considering a bid because it wanted to bring more chip expertise in-house. ARM licenses chip designs to semiconductor companies including Qualcomm (NSYE:QCOM) and Texas Instruments, and an ARM-based processor is in Apple's iPhone. Apple purchased silicon firm PA-Semiconductor in 2008 for $280 million as part of its efforts to build specialized chip components for its products. The market chatter pushed ARM's shares to an eight-year high yesterday. However, ARM CEO Warren East subsequently cooled the issue by noting the economics of such a deal simply do not make sense. East said ARM's market capitalization of around $4.6 billion represented a major obstacle for a company to try and buy ARM when it could just license ARM's designs instead. "Exciting though it is to have the share price pushed up by these rumours, common sense tells us that our standard business model is an excellent way for technology companies to gain access to our technology," East told the Guardian. "Nobody has to buy the company." An Apple spokeswoman did not immediately respond to a request for comment. Apple is sitting on a cash hoard of $41.7 billion, which could have been a factor in sparking the market rumors. However, any bid for ARM would likely run into a host of challenges, since ARM supplies designs for many of Apple's direct mobile phone competitors.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.