ARM gets boost from Apple-China Mobile iPhone deal
Shares in ARM rose 2.5% on Monday morning because ARM chips are used in Apple iPhones
Techworld.com - UK chip-designer ARM today emerged as one of the companies set to get a boost from the deal that Apple signed with China Mobile last night, which will see the Californian tech giant's iPhone 5S and 5C go on sale to nearly a billion customers.
Shares in the Cambridge-based company rose 2.5% on Monday morning because ARM's technology can be found in every single iPhone. ARM licenses the intellectual property for its chip designs to manufacturers and receives royalties for doing so.
Marc Kimsey, senior trader at Accendo Markets, said the UK chip architect is poised to benefit from the deal. "[China Mobile] boasts more than 750 million subscribers; put into context, the entire US population consists of 'just' 318 million. With ARM technology in every Apple handset, the potential is obvious. Expect to see Apple's 5% share of the $80 billion Chinese smartphone market increase significantly in 2014," he said in a note.
Apple already sells its phones in China through China Telecom and China Unicom, but a deal with China Mobile, the largest carrier in the country, had eluded it for some time. One reason is that China Mobile uses a different wireless telecommunications standard from its competitors.
On a similar note, the ARM's shares rose 4.5% in September when Apple announced its flagship smartphone, the iPhone 5S, would be built on ARM's technology.
ARM told Techworld earlier this year that its chip architecture can be found in 90% of mobile devices around the world.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Pay-as-you-Grow Data Protection: IBM Tivoli's Full-featured Data Protection Suite for Small to Medium Businesses IBM Tivoli Storage Manager Suite for Unified Recovery gives small and medium businesses the opportunity to start out with only the individual solutions...
- Streamline Data Protection with IBM Tivoli Storage Manager Operations Center IBM Tivoli Storage Manager (TSM) has been an industry-standard data protection solution for two decades. But, where most competitors focus exclusively on Backup...
- Simplify and Consolidate Data Protection for Better Business Results Learn about IBM® Tivoli® Storage Manager Operations Center, which provides advanced visualization, built-in analytics and integrated workflow automation features that leapfrog traditional backup...
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All Processors White Papers | Webcasts