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Apple to Make an Offer to Acquire ARM?

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Apr 12, 2001
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The London Evening Standard reports that there has been rumors in London's financial district that Apple may be interested in acquiring ARM Holdings. ARM's shares shot up today based on the strong financial results from Apple yesterday. ARM provides the CPU designs for Apple's iPhone, iPod Touch and iPad. ARM, however, also provides the chips for a broad range of mobile phones including Android and Palm devices.
"A deal would make a lot of sense for Apple," said one trader. "That way, they could stop ARM's technology from ending up in everyone else's computers and gadgets."
The Register reports that the takeover offer is rumored to be in the $8 billion range which would consume almost 20% of Apple's $41.7 billion cash reserves. While a substantial portion of Apple's reserves, The Register accurately points out that this would "send shockwaves" throughout the industry, as Apple would be able to withhold such chips from their competitors.

Article Link: Apple to Make an Offer to Acquire ARM?
 

arn

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Apr 9, 2001
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I have no clue on the regulatory feasibility of this, but seems like if it were allowed to happen, and apple were to prevent others from using arm chips. it could kill a huge portion of the mobile segment.
 
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iVoid

macrumors 65816
Jan 9, 2007
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I have a hard time believing this would be approved by anti-trust regulators unless there are safeguards so Apple doesn't keep ARM away from other companies.

It would basically push almost every other smart phone maker out of the market until they can retool for a different mobile processor. ARM is used pretty widely.
 
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calsci

macrumors 6502
Nov 27, 2008
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I am so skeptical of this. Apple has never really been into doing this. At least as long as I can remember.
 
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i.mac

macrumors 6502a
Dec 14, 2007
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google is just about now proposing to offer 16 billions for the thing... and a free nexus phone.
 
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t0mat0

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Aug 29, 2006
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Seeing as Apple looks in all intents to be moving towards the Power Architecture of the PA Semi chips, for iPhone, Touch, iPad, and have the capability of scaling that up to the MacBook, and Mac mini -

Pump and dump? buy high, to sell short? Seems a trading scam...
If Apple did this, a lot of companies would cry wolf - see Intel's trigger purchase of stock of Imagination Technologies I think, when Apple bought a slice of them.
 
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awmazz

macrumors 65816
Jul 4, 2007
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It would basically push almost every other smart phone maker out of the market until they can retool for a different mobile processor.

Which they would do, so no point. iPhone sales dominance doesn't need a squeeze-out like this which would only be temporary at best anyway.
 
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carmenodie

macrumors 6502a
Apr 25, 2008
775
0
I have a hard time believing this would be approved by anti-trust regulators unless there are safeguards so Apple doesn't keep ARM away from other companies.

It would basically push almost every other smart phone maker out of the market until they can retool for a different mobile processor. ARM is used pretty widely.

Won't happen!!
I have zero understanding of such laws but I have loads of common sense though.
IT WON'T HAPPEN!!!!!
 
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retroneo

macrumors 6502a
Apr 22, 2005
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Apple shouldn't have sold it off in the first place, however they wouldn't have survived throughout their troubled times in the mid 90s if they hadnt.
 
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dernhelm

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May 20, 2002
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I have only one thing to say:

muhwhaaaahaaaahaaahaaa!

<evil grin>


----

Seriously, this would be my favorite merger/buyout that's happened in the computer industry ever. Apple buys ARM, and everyone else either pays thru the nose or is forced to use crummy Atom chips.

Probably won't happen, but that would bollux up a lot of the competition.

And to think, they'd still have 80% of their war chest left.
 
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Eric5h5

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Dec 9, 2004
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Apple shouldn't have sold it off in the first place, however they wouldn't have survived throughout their troubled times in the mid 90s if they hadnt.

Well, then clearly they should indeed have sold it off in the first place. ;)

--Eric
 
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iSee

macrumors 68040
Oct 25, 2004
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I'm not sure Apple would be wise to lock others out of ARM (if they did acquire it).

ARM processors got where they are today by being reasonably available, adaptable, and licensable. The competition to have the best ARM implementations has led to great innovation. If Apple takes the whole thing, the processor will stagnate. Meanwhile other, open solutions will arise for the rest of the market. They won't be left behind for long.

The best reason for Apple to do this is to ensure no one else (Google) can buy ARM and lock them out.
 
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thejadedmonkey

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May 28, 2005
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Which they would do, so no point. iPhone sales dominance doesn't need a squeeze-out like this which would only be temporary at best anyway.

Assuming that Apple didn't buy out the contracts when they purchased ARM (if they even could) than you'd still have the snapdragon processors, as well as the Samsung A4-esque CPU's. The industry would have time to react, but not much. It would, temporarily, up end the mobile phone industry.

And the iPhone would advance. And who wants a droid when you can get an iPhone with 2x the battery life?

Then consumers get locked into the app store infrastructure. And by the time that the other companies (like Intel) have recovered, the whole population is locked into the iPhone/app store.

Apple FTW.

This would destroy competition and buy Apple enough time to give Apple a market dominance much like MS enjoys with Windows.
 
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