ARM not hit by smartphone slowdown
The company designs chip technology found in more than 95% of all smartphones, including Apple. The company's stock has fallen as much as five percent today.
In Apple's last quarter, the tech company reported that it had sold 74.8 million iPhones, a minor increase over the same period the previous year, when the giant sold 74.5 million. "It expects dollar revenue for this year to be broadly in line with market expectations, and predicts strong momentum for royalty revenues ahead coupled with a healthy licensing pipeline".
Four billion ARM-based chips were shipped in Q4 - up 16 per cent year-on-year.
Business Weekly has previously reported ARM's progress with building a new flagship headquarters in Cambridge, which will bring a further surge in headcount.
Micro-processor royalty revenues in US$ were up 24% year-on-year and the company's order backlog rose about 10%.
ARM acknowledged that increasingly hard global economic conditions could weigh on its performance.
"During the year ARMv8-A surpassed 50 per cent share of smartphone shipments, Mali became the industry's highest-shipping GPU architecture, and our partners increased their shipments into enterprise infrastructure and embedded markets".
"Clearly China is an issue for businesses globally", Kennedy said.
They also flagged the outlook."ARM does not typically use the word "broadly", they said.
ARM said that its strong results had been buoyed by its shift into "emerging market opportunities", such as connected devices. ARM competes in this part of the market with other chip designers and manufacturers, such as Intel Corp.
Julian Yates at Investec said there was "no magic number" in ARM's results that would propel the shares back up to 1200p, their peak reached just over a year ago, but said progress appeared to be good in the current climate.
"Demand for our technology is increasing and during the quarter we signed multiple licences for the next generation of high-performance and secure ARM processors".
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Source: ARM not hit by smartphone slowdown
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