ARM builds profits up 22pc on smartphone successes

Arm Holdings- whose computer chip technology powers Apple and Samsung smartphones, has posted a 22% rise in quarterly profits to £68.1 million.ARM builds profits up 22pc on smartphone successesAt the same time, Arm’s revenues went up 20% to £144.6 million in the three months to the end of September.

The increase was helped by the company expanding in newer markets-  such as digital televisions and hearing aids.

Shares in Arm, which said in a statement that it had a record order book, rose 2.7% in morning trading.

Chief executive Warren East said: “Arm has delivered another quarter of strong revenue and earnings growth. As we move into an ever more connected world of mobile computing, cloud-based networks and the Internet-of-Things, Arm is seeing increased demand for its high performance and low-power technology.

“This demand is helping to drive Arm’s licensing revenues and this quarter we saw market leaders license Arm’s advanced processor technology for next-generation super smartphones, tablets and mobile and embedded computing applications.”

ARM has also announced this week that it has developed a new processor that will enable manufacturers to make cheap smartphones and improve battery life on top end devices.

The new Cortex-A7 processor is much cheaper than usual as it uses half the amount of silicon and so has the potential to let manufacturers create a £60 smartphone with the same processing power as a smartphone that costs £300.

The new chip also uses a fifth as much power as ARM’s Cortex-A8 processor, used in smartphones including the Samsung Galaxy S.

ARM has said it will give manufacturers the chance to create smartphones for developing markets such as Brazil, China and India – although it could also open up new potential for budget and Pay As You Go smartphones.

This low power usage has also been suggested as a way of improving battery in top smartphones by combining the small processor with a more powerful chip.

This ‘big.LITTLE’ design will allow a phone to use the low power processor for simple tasks while kicking in the more powerful chip when it is needed.

ARM is a UK that is beating the world in the manufacture of low power, high output chips- without which Apple’s iPhones and iPads wouldn’t function. As such it’s future growth is assured for the near term at least.

November 7, 2012  Tags: , , , , , , , , ,   Posted in: Business Communications, Business Exports, Business Profits, Business Sales, Business Services, Business Win, Connected Business, Digital Business, Exporting Businesses, Global Business, Growing Business, Growing Profits, Growing Sales, Technological Businesses, Uncategorized, Winning Business

One Response

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