ARM ‘outperforming’ Intel

When you think of computer chips, you probably think of Intel.  Indeed our Operations Insight 12.2 (pages 321-322) is about this company.  But right now, a British company -Arm Holdings – is growing faster the brand leader.  Arm provide the computer chip technology in Apple’s iPhone and iPad.  It recently has reported a 23% increase in second-quarter profits, up to £66.5m, with sales of £135m for the three months to the end of June.  This sales level represents 2 billion semiconductors, which according to our calculations means that each chip costs less than 7 pence.

Arm licenses its technology to chip makers and receives royalty income on its intellectual property.   The company’s good performance was for two reasons – production volume was 9% up (compared to an industry-wide fall of 4%), while processor royalties grew 14%.   But to put this in context, Arm’s annual sales will be around £600 million, whereas Intel’s sales last year were $54 billion.

This entry was posted in Chap 10 Processes and technology, Sector: Manufacturing, Uncategorized and tagged , . Bookmark the permalink.

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