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goafrit
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Re: Slow and steady wins the race
goafrit   11/6/2013 10:00:13 AM
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>> IMO one of the reasons ARM has been so successful is that they haven't been greedy.  

I think this firm has a solid and good IP. There are many free things which no one touches. I think ARM has shown resilence and ability to innovate. With good IP, they are doing well despite the small fees as at least people are interested in their products.

goafrit
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Re: Higher risk business model
goafrit   11/6/2013 9:58:03 AM
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>> Your knowledge of ARM, its business model and the markets it is already active in is very poor.

It seems I am not following ARM very well. They are indeed doing more than I am giving them credit. Ok - I get it.

betajet
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CEO
Slow and steady wins the race
betajet   11/5/2013 1:10:59 PM
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IMO one of the reasons ARM has been so successful is that they haven't been greedy.  Sure, they could probably charge more for licenses and end up like MIPS, PowerPC, and Intel's attempt to license Atom.  By keeping licensing fees low, adding an ARM core to a chip is an easy design decision.  Those pennies add up to real money.  JMO/YMMV

licence
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Rookie
Licensing/Royalties
licence   11/5/2013 12:54:25 PM
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The original article states

"Eighteen of the 48 new licenses were for microcontroller-class Cortex-M products, a fact that kept ARM's average royalty per chip flat year-on-year at 4.9 cents"

There is zero connection between the licensing agreements signed in Q3/2013 and the royalties collected during the same period so the above link is very wrong.

 

 

licence
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Rookie
Re: Higher risk business model
licence   11/5/2013 12:51:07 PM
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Hi goafrit

Your knowledge of ARM, its business model and the markets it is already active in is very poor.

 

"This quarter, we saw strong growth in the number of ARM-based chips sold into markets beyond mobile devices. The non-mobile markets now represent 52% of all ARM-based shipments. ARM-based microcontrollers and smartcards shipments increased 20% year-on-year"

 

goafrit
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Manager
Re: Higher risk business model
goafrit   11/4/2013 12:13:48 PM
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>> Roughly 1+ billion $ / year in revenues and a 50% profit margin is from a purely profit point of view equal to 5 billion $/ year in revenue and a 10% profit margin (which is what we find in average industries).

That is not financially true though it could make a lot of mathematical sense. If you have revenue of $5B, it means you have a better market share which could be more important than the profit you are making.ARM is a great firm of course but I just think they can take up Intel and help provide alternatives in the overall computing space, not just mobile.

KarlFredrik
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Rookie
Re: Higher risk business model
KarlFredrik   10/23/2013 5:43:59 AM
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Depends on what we compare with.

Roughly 1+ billion $ / year in revenues and a 50% profit margin is from a purely profit point of view equal to 5 billion $/ year in revenue and a 10% profit margin (which is what we find in average industries).

They aren't doing that bad from a capitalist point of view, when considering profits and their stability over time.

junko.yoshida
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Blogger
Re: Higher risk business model
junko.yoshida   10/23/2013 2:27:49 AM
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Considering ARM is an IP licensing company, not a chip makerrevenue it sure what you consider as an acceptable (or ambitious) revenue the company should be shooting for.

rick merritt
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Author
Re: Higher risk business model
rick merritt   10/23/2013 12:18:43 AM
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IMHO ARM is well positioned in an era of fewer companies making chips and fewer roles for general purpose homogenous cores.

Intel is less well positioned with so much riding on investments in a dozen megafabs and a single general purpose CPU core at a time when chips are migrating to SoCs of optimized custome core blocks.

rick merritt
User Rank
Author
Re: Higher risk business model
rick merritt   10/23/2013 12:18:41 AM
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IMHO ARM is well positioned in an era of fewer companies making chips and fewer roles for general purpose homogenous cores.

Intel is less well positioned with so much riding on investments in a dozen megafabs and a single general purpose CPU core at a time when chips are migrating to SoCs of optimized custome core blocks.

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