ARM Own Way Challenges Intel

ARM corporate headquarters is located in the idyllic city of Cambridge, UK University Town, the south side. Only three buildings, whether the park or the surrounding environment, are hard to be here with the latest technology to link the cradle.

But in today’s world almost every mobile phone sold by the company are designed to use low-power chips. The next major technological revolution, ARM will also occupy a pivotal position. That is so-called Internet of Things, in this network, all the everyday objects Du would be built-in chip, enabling it to process information, and ability to communicate with the network.

Some analysts believe that, in the post-PC era, the Intel ad sound familiar – … … bang bang, bang, bang, bang – will change with the technology disappear, people will not hear any sound. Or rather, ARM will quietly grown into the world’s most important technology companies.

ARM’s business is to chip design licensed to Apple, Samsung and Qualcomm, and other enterprises, these enterprises are usually at their own demand on the design of certain adjustments. In addition to mobile phones, there are many devices use ARM chips, including Sony TV, Amazon Kindle electronic reader, the hotel access control systems, printers, vending machines and automobiles.

Warren EaST in a recent interview, said: “Our customers a year to sell 40 million units.”

Investors are optimistic about ARM’s business. Over the past year, the company’s share price almost doubled three times, from a low of 6.52 U.S. dollars up to the last Friday of 18.34 U.S. dollars. There were even rumors that Apple will acquire ARM. However, given the extensive cooperation ARM mode, so this is unlikely to happen.

Eastbourne, said: “I laugh it off, this is ridiculous.”

Different business models

ARM’s chips are used in a variety of devices, compared to Intel’s annual shipments of hundreds of millions of pieces of chip it is a shame, though the latter is the world’s highest-paid chip manufacturers. Analysts considered the two enterprises will inevitably mortal CIA, and that they will chip market dominance in a close fight started. ARM executive usually low-key style of their play down such a view.

Eastbourne, said: “People want our relationship with Intel is like, like David and Goliath. But it is not the case.”

ARM Eastbourne and other executives are noted for their business models with Intel is not the same. Intel to design and produce their own PC and server chip, each chip-chip costs about ranging from 50 to 1000 U.S. dollars. The ARM chip manufacturers will be signed with a number of contracts, the price of each piece chip 0.65 to 20. Through the licensing business, ARM can derive little revenue.

Last year, ARM’s revenue was 4.9 billion, while Intel is up to 35 billion U.S. dollars. However, Eastbourne is that all use ARM architecture chips Intel chips worth the value of basic and fairly.

“We are not the same with Intel,” he said, “We will never be a revenue in billions of dollars in business.”

The face of great opportunity

However, ARM has just launched a network can be used in servers and equipment, chip design, which is exactly what Intel’s domain. Intel has also started with low-power chips into smart phones, television and consumer electronics.

Intel spokesman Bill Kircos said: “Even according to conservative estimates, will soon be billions of units to be activated. This is the chip industry, is a great opportunity.”

Ke Kou Sijian hold that, Intel’s manufacturing advantage to the conventional cycle can produce energy at lower, cheaper chips, which compete with ARM and its partners. ARM has with Nokia, BMW and Google and other companies wish to develop new equipment to start a cooperation.

ARM executives also believe that the future will be several billions of devices and daily use of fully functional chips, or at least with Internet access will be built-in sensors, including cars, refrigerators, televisions, clothing and buildings.

They believe that in many cases, these objects need to the extent possible, use the lowest power consumption chip, because they usually can not directly use the power. Energy has replaced performance as the biggest concern, ARM executive said the company in this area a great job.

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Category: Business Management
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