Feeds

ARM scooping in cash but remains cautious

From iPhone A4 and rivals' Snapdragon to washing machines

The Power of One Brief: Top reasons to choose HP BladeSystem

ARM has outperformed estimates for the second quarter, increasing revenue by 18 per cent as its chips continue to be embedded in everything from mobile phones to washing machines.

More than a billion chips, based on licensed ARM designs, shipped during the second quarter of 2011. That pushed the company's pre-tax profits up to £54.2m on revenue of £117.8m, well above analysts' estimates of £45.3m. But the company is still cautious about the rest of the year, with its own predictions for the whole of 2011 unchanged.

ARM chips form the heart of just about every telephone, landline or mobile, from the latest iPhone to the bargain-basement handsets. ARM makes a lot more money from the high-end chips in the latest smartphones, and is nervous of prevailing economic conditions that seem to dictate slowing smartphone sales as the year progresses. ARM's ubiquity should mitigate against that to some extent, but that won't boost the bottom line to the same extent.

The company also has aspirations in the server business, not to mention powering the much-hyped Chrome OS devices, which are expected to multiply over the next year or so.

ARM doesn't make chips, it only designs cores which can be incorporated into system designs. Older ARM chips turn up all over the place, but it is the more recent designs which attract a premium.

The A4 chip, inside the iPhone, shares a recent ARM core with Qualcomm's Snapdragon, so despite the fact that the two processors have little else in common, ARM makes money from both of them. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.