iPhone 5S and iPhone 5C : Launch is boost in the ARM for British microchip industry

 

Click to follow
The Independent Online

Opinion may be divided on the latest incarnations of Apple’s iPhone, but investors were today clear on one thing — the benefits for the British microchip industry.

Apple last night launched two new iPhones at the company’s headquarters in San Francisco: the high-powered 5S and a cheaper plastic version of the handset, the 5C.

On the back of the launch,  British-based ARM Holdings and Imagination Technologies both saw shares jump.

ARM licenses its microchip designs to manufacturers and analysts reckon the 64-bit A7 microprocessor used in the iPhone 5S will reap a higher royalty rate for the Cambridge-based company – 2% compared with the current 1.5-2%.

Mobile graphics microchip-maker Imagination is also expected to benefit, as the iPhone 5 is thought to include Imagination’s latest chip. As with ARM, Imagination’s technologies carry a higher royalty rate. Apple is the Hertfordshire-based company’s largest customer.

ARM Holdings shot to the top of the FTSE 100, jumping 45.5p to 986.5p, while Imagination Technologies was up 6.2p at 308.1p.

Comments