Apple's acquisition of mobile phone giant ARM processor message has been passed down 4 days, the two sides so far none of clarification.ARM where the British first revealed that a local news media, said Apple intends to 80 billion acquisition of ARM.According to Apple just released earnings last week, their hands are now 417 million in cash, the face of less than 6 billion dollars in revenue ARM, the acquisition does not charge any effort seems.
Surprise the industry, ARM co-processor licensing is the world's mobile giant's market share in mobile phones close to 100%, which is an extension of moving markets such as the Internet, Lenovo has just announced a few days ago with the depth of cooperation.With Apple iPhone, iPad and other popular products in the mobile Internet is extremely popular, and if eating ARM, is expected to create a super-big business, enough for Nokia, Samsung, Sony terrified.
Apparently, Apple does need to ARM.Over the years Apple has been close cooperation with the ARM.Not long ago, Apple iPad also spend the first custom ARM processor.If Apple succeeded, this will become a consumer electronics giant behind the existing mobile Internet market, the largest provider of IP cores, and its vertically integrated business model will be even more powerful.
But this will not just wishful thinking? Two days ago, ARM CEO Warren responded that the acquisition of ARM shares rose to a lot of rumors and exciting, but the company's business model is licensing the technology to other companies, ARM processor itself doesno purchase necessary.
This seems to be pouring cold water, and also implies the evaluation of the Apple business model.ARM has been outside authority a lot of processor partners, and almost all of Apple's core areas over the years taking on everything from hardware to software.
"Apple really want to buy ARM, it will face the contradiction between the two business models." Global semiconductor, senior analyst at research firm isuppli Gu Wenjun of China said.
ARM's profit model is like Book Publishing: First one-time revenue of foreign authority; Second, royalties, that is, to produce a chip get royalties.As low-cost, ARM overall revenue has been small.However, over the past 10 years, it has trained a much larger market than PC camp, such as cottage phone.According to Apple's business model, if successful is likely to stop the ARM acquisition of external authority.That would cut global enterprises ARM processor camp way out, and directly affect the survival of downstream cell phone companies, on the communications market is undoubtedly a disaster.
If succeeded, after Apple ARM licensing structure to maintain it? I believe that it is difficult.Because Apple is the home consumer electronics companies, to the platform of the road, the processor business is subject to its terminal core, but not an end.Even for ARM Partners to continue to authorize the original, will produce conflicts in many areas, such as processor products, and Qualcomm, MTK, Spreadtrum duel, in the PC, mobile phones and other mobile devices, andhas become the partner of Nokia, Samsung, Lenovo and other competition.
Apple should not place themselves in the awkward position.Gu Wenjun that Apple is likely to acquire ARM partners, such as processor design business.In fact, it has been doing the layout.2008 acquisition of over PA Semi, strengthens IBM application processor architecture.If we have a business support ARM-based processors will be able to complete coverage of the existing mobile Internet terminal.Even Intel's rapid growth in this area, it is difficult to check the Apple camp.
If you choose this route, Apple is expected to continue to play a new round of industrial revolution leader.This is an open road.Apple has realized that monopolize an industry chain will not really create an industry.Because it will hit Intel's monopoly in the PC topics facing the field, which was seen as the culprit sick PC industry.