Arm profits powered by the rise of smartphones
Wednesday 02 February 2011
Arm Holdings, whose chips help run devices including the iPhone, enjoyed a stellar year in 2010, driven by the rise and rise of smartphones; with the chief executive predicting more to come from the industry.
Warren East, the head of the blue-chip semiconductor group, said: "Everything we have been saying about the rise of smartphones over the past six years is now out there in the market. It is very satisfying."
The blue-chip company had record orders in the fourth quarter and beat analyst expectations as revenues rose a third to £407m. Pre-tax profits rose 73 per cent to £167m. "The growth of smartphones still has a long way to go," Mr East said, adding that research firms reported the number of the devices shipped had risen 56 per cent from 180 million in 2009 to 280 million last year.
More than a billion of Arm's chips were shipped in smartphones last year. Mr East predicted that could rise to potentially 4 billion by 2015.
The growth of tablet computers has also become hugely profitable for Arm. Mr East said he had not predicted the market would be this buoyant so early after the launch of the iPad last year, the first tablet to properly breach the consumer market. It has also signed deals to put its chips into digital TVs and smartcards.
Earlier this year Microsoft also revealed that new versions of the Windows operating system would support Arm chips. "That was a big deal. Exactly how big is hard to quantify at the moment," Mr East said.
While management said growth would not be as strong as last year, the company has continued to expand. It increased its headcount by 10 per cent last year.
Mr East dismissed the takeover talk which hit the markets last month, saying its business "favours independence" as it sells to rivals across the industry.
arts + entsThere were towering ideas, some scintillating performances and revelatory grooves... our writers pick out their personal highlights
elephant appealPrince William signs up for our charity appeal
peoplePrepare to be entranced by worms as the molecular biologist gets ready to give the Royal Institution science lectures
elephant appealSo says man jailed for cutting off dead elephant's tusks
booksWe examine the best titles for teens
scienceResearchers teach border collie to understand sentences using more than 1,000 words
booksA Christmas story in six parts
travelWill high-value tourism help the workshops of this Renaissance city?
Geoffrey Macnab does not like the comedian's big screen debut
Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
Ten best places to live in the UK: Hart in Hampshire takes top spot
'Untrue statements' anger over work to make H5N1 bird-flu virus MORE dangerous to humans
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
- 2 French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 The publisher who played with fire: the battle for control of Larsson's £30m legacy
- 5 Police seize possessions of rough sleepers in crackdown on homelessness
- < Previous
- Next >
iJobs Money & Business
£90000 per annum + benefits: Pro-Recruitment Group: Manager - Financial Servic...
£59999 - £80001 per annum + Benefits: Pro-Recruitment Group: A Top 10 firm in ...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Project Manage...
£60000 - £90000 per annum + benefits + bonus: Harrington Starr: Business Analy...