ARM CEO Downplays Talk of Apple Acquisition

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The CEO of ARM seemed to dismiss a rumor that Apple was considering acquiring the UK chipmaker as unnecessary. He did not flatly denying the chatter which erupted earlier this week, however.

“Nobody has to buy the company,” Warren East told The Guardian. The London-based Standard reported Wednesday Apple was talking about buying the chipmaker for $8 billion, citing UK traders.


“Exciting as it is to have the share price pushed up by these rumors, common sense tells us that our standard business model is an excellent way for technology companies to gain access to our technology,” East reportedly said.

ARM’s stock rose 3.4 percent in the wake of the rumors, hitting its highest price since 2002.

Whether the rumor was valid or simply a leak designed to drive share prices higher, observers on both sides speculated on why Apple might be interested in owning ARM. The Cambridge, UK-based company has extensive licensing deals with most cell phone makers, as well as mobile computing manufacturers. If Apple controlled that supply they could dictate the terms, causing major problems for rivals. ARM chips are used as the basis for the chip found in the iPhone, iPad and iPod.

However, others argue purchasing such a large organization with so many potential entanglements would run counter to Apple’s usual philosophy.

Talk of acquiring ARM may be the result of an increasing focus on chipmakers as rivals position themselves in a changing market led by tablet devices, such as the iPad and others. Reports recently suggested Apple rival Google had purchased a stealth startup composed of former Apple employees. Agnilux was created by Dan Dobberpuhl, CEO and founder of P.A. Semi, a fabless chipmaker Apple acquired for $278 million in 2008. A number of other former P.A. Semi workers joined Agnilux after the Cupertino, Calif. company purchased the chipmaker.

The first product from the Apple-owned P.S. Semi reportedly is the 1GHz A4 chip, a custom design of an ARM processor found in the iPad. Other semiconductor chatter swirling around Apple is a rumor the consumer electronics leader acquired Intrinsity. Some speculate that chip designer helped make the A4 chip faster.

[via AppleInsider and Mac Observer]

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