Retail Technology  

A chip off the old block

One of the world's most significant electronic chip designers continues to dominate the industry
 ARM chips enjoy continued success

UK based firm, ARM Holdings has applauded investors as profits and sales continued to rise despite the difficult economic conditions.

The chip designer produces the technology that appears in both the Apple's iPhone and iPad as well as a series of smartphones and other electrical equipment.

In fact, 95 percent of all smartphones contain an ARM-designed chip, alongside 90 percent of hard drives, 80 percent of digital cameras, 65 percent of printers and 50 percent of digital TVs.

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This industry domination has led to a reported jump of 22 percent in pre-tax profits in the first half the year, amounting to £128.5 million. Revenues have also increased 12 percent to £422.4 million.

Also contributing to the celebrations are the shares in the company which rose by six percent in the FTSE 100 Index, and a further 23 licenses that have been contracted to ARM in the period of its microchip technology.

Meanwhile, processor royalties grew 14 percent compared with a decline in industry revenues of seven percent, while new products using the chips such as computers and servers from Dell and Microsoft were also launched in the period.

ARM's semi-conductor chips, which also feature in a number of products which run Microsoft Windows software, consume less power than traditional PC microprocessors, essential for battery-powered devices. The group makes money by licensing its technology to customers and receives royalty payments every time devices with its chips are made by its clients.

ARM chief executive Warren East said of the company’s recent successes: "ARM's royalty revenues continued to outperform the overall semiconductor industry as our customers gained market share within existing markets and launched products which are taking ARM technology into new markets."

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