2013-04-16 10:05:26 +02:00

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finance
newsbysector
epic
arm
7639179
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# Profits jump at iPhone chipmaker Arm
## Arm Holdings, the unsung British microchip designer behind the success of
Apple's iPhone and the rest of the world's smartphones, has reported a near
doubling of first quarter profits.
By Rupert Neate 2:10PM BST 27 Apr 2010
[Comments][1]
The Cambridge company, which designs microchips for 98pc of the world's mobile
phones, said a record 1.4bn of its chips were shipped in the three months to
the end of March, **[helping push pre-tax profits up 98pc to £26m][2]** on
sales up 20pc to $143m (£92m).
**ARM Holdings**
Warren East, chief executive, said: "We've reported record volumes, record
revenue and record profits, it's a pretty good start to the year."
Mr East said the inexorable rise of smartphones, such as the iPhone,
BlackBerries and phones running Google's Android operating system, were the
main drivers behind the company's success.
"The trend towards smartphones has continued, and continued throughout the
downturn," he said. "The smarter they get the more ARM technology they
require."
He said the average smartphone contains three or more ARM processors, and
generates the company about six-times the royalty it collects from standard
mobiles.
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10 Sep 2010
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28 Jan 2010
Smartphone sales increased by 24pc last year, while the overall mobile market
remained flat, according to research by Gartner. Analysts expect that
smartphones will account for 70pc of all phones sold in Europe by 2012.
ARM is also benefiting from the increasing adoption of mobile phone technology
in other electronic devices, notably Apple's new iPad personal computer. Mr
East said he was "very excited" about the iPad, which is due to launch in the
UK at the end of May, because it may revoluitonsie the whole personal
computing market.
"The iPhone acted as a great stimulus to encourage competitors to develop
products to beat the iPhone," he said. "The iPad looks like it has set the
competitive bar again, and will stimulate people to do a lot of other creative
things."
Mr East dismissed rumours that Apple may be planning a £3bn takeover of the
company.
Adrien Bommelaer, analyst at PiperJaffray, said: "ARM's first quarter results
were well above expectations and even better than was reported so far in the
semiconductor sector."
The shares, which have doubled in the past year, were trading 2.2p lower at
256.4p in lunchtime trading.
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