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Dodgy rumor has Apple buying ARM

updated 11:40 pm EDT, Wed April 21, 2010

Traders think Apple may get ARM to shut out rivals

An unusual rumor late Wednesday has claimed that Apple might try to buy ARM. The gossip was sparked by the iPhone maker's record quarterly results and a believe that the over $40 billion in cash might be used to corner the mobile processor market. Speculation by stock traders sent shares of ARM up 8.1 percent on the UK exchange.

Such a deal would be difficult or potentially impossible for Apple due to legal issues. As most smartphones from HTC, LG, Nokia, Samsung and others now use some form of ARM architecture, Apple could either end licensing or else use its ownership to impose unfavorable terms. Unfair advantages in the processor market have also come under scrutiny and may do so again, as the EU fined Intel for allegedly abusing its dominance to hurt AMD in part because it owned a licensed chip architecture and could use that to squeeze out a competitor.

To date, Apple has never owned an architecture and only just began releasing products with custom processors following this month's shipping of the iPad, whose A4 chip is based on ARM's Cortex-A8.




by MacNN Staff

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Comments

  1. Woode

    Joined: Dec 1969

    +1

    *hack*

    *cough* bull puckey *cough*

  1. iphonerulez

    Joined: Dec 1969

    -1

    Some prankster started a rumor...

    and has all the FAndroids up in arms because they're scared that Apple will buy ARM and kill Android thereby cornering the entire mobile landscape and it will become Steve Jobs personal kingdom. Monopolies kill innovation or something like that. I suppose that did happen with Windows for umpteen years.

    It doesn't seem ARM would have anything to gain by being bought by one company when it has so many companies that use it's processor line. That and anti-trust issues practically rules out any chance of Apple acquiring ARM. I thought it would be a pretty sweet acquisition, but I suppose it's not very likely. Too bad. The bloggers that start these rumors are so pathetic.

  1. wrenchy

    Joined: Dec 1969

    0

    Oh god!


    Does this mean Steve Jobs can shutdown and brick any ARM equipped device at his whim? Stevie-Boy would love that kind of control...

  1. PRoth

    Joined: Dec 1969

    +4

    Even MacNN deemed it dodgy.

    ...and THAT says a lot!

  1. Feathers

    Joined: Dec 1969

    0

    It's not anti-trust

    It would only be an anti-trust issue if Apple already controlled a significant proportion of the microprocessor market. They don't so it isn't. Secondly, competing companies thumping each other like Intel and AMD in the same market is not the same as Apple acquiring a company and then taking all its IP in house and private. There is nothing to prevent Apple from buying ARM and then terminating all outside licenses, that's the nature and value of acquiring intellectual property. You're not obliged to sell or license it to anyone!

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