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Summary:

ARM Holdings today said raised royalty rates for cores from its Cortex processor range. It’s a sign that ARM is confident it will build on its considerable momentum as our world becomes increasingly connected. With the move, the battleground of converged devices has heated up.

UPDATED: The brains behind many of those new connected devices just got more expensive thanks to ARM Holdings. Update: The UK-based intellectual property licensing firm today hiked royalty rates for cores from its Cortex processor range by as much as 20 percent when compared to rates for its other cores.

ARM licenses its low-power cores to manufacturers of phones, consumer home devices and netbooks, among other gadgets. The company has enjoyed dramatic growth over the last two years — particularly in the smartphone space, where most devices use ARM-based application processors — selling 4 billion ARM-based chips in 2008 compared with 12 billion over the last 15 years combined. The rate hike indicates ARM is confident it will build on that momentum as connectivity comes to a host of consumer electronics devices in the coming months. Those converged devices have become a battleground in the chip industry (GigaOM Pro, sub. required), pitting ARM against Intel — which has owned the PC space — among others. With this move, the war is clearly not over.

In-post image courtesy Flickr user Roger Smith; thumbnail of Flickr user Nick Sherman.

  1. LOL.. i expected by the headline that there will be 20% hike.. That is a hike of .2% on total cost of processor.

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  2. Colin has totally misinterpreted the article published in EE times. The fact is, ARM has not raised any royalty rates. But the new Cortex processor has c.10-20% higher royalty rates (which is normal trend as new processors typically command higher prices initially). And on top of that Cortex based phones represents just 1% of the total phone shipments, so it does not make any sense that smartphone price will increase. I expected some better analysis from this blog….

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  3. Thanks for the comments, guys. We’ve updated both the headline and post itself.

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