Feeds

ARM scooping in cash but remains cautious

From iPhone A4 and rivals' Snapdragon to washing machines

5 things you didn’t know about cloud backup

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. ®

The essential guide to IT transformation

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.