ARM certainly has an example to follow in Qualcomm, though. It all depends on what they want to be when they grow up. It seems like there may be less risk in their model for the embedded market, where customers are far less tolerant of Intel - style profit margins. It is much less expensive for ARM to scale up by adding licensees than it is to add fab capacity.
>> The deals drove revenue up 26 percent year-on-year to $286.7 million and pre-tax profits up to about $150 million.
I do not think it is a lot of celebration that ARM is still in the range of $290M revenue range. I am not sure if it is the ambition or the business model but if this is to be in America, more will be looking for real growth. Sure, the model is low risk but it is not giving a lot of growth for this world-class organization. ARM needs to rethink if licensing can get them to where they need to be