Microchip maker ARM Holdings hit by smartphone sales slowdown

Microchip-designer revealed flagging shipments of high-end smartphone chips in fourth quarter

Microchip-designer ARM added to fears of a slowdown in the smartphone market today, as it revealed flagging shipments of high-end smartphone chips in the fourth quarter.

Cambridge-based ARM Holdings, whose chip designs are used in around 90 per cent of smartphones, saw fourth quarter pre-tax profit jump 19 per cent to £95.5 million, while revenue rose 15 per cent to £189.1 million in the quarter.

But ARM said there was slower growth in royalties from shipments of premium smartphone chips. The expected rush of manufacturers migrating to ARM’s 64-bit microchip designs after Apple’s inclusion of the next-generation chips in its iPhone 5S appears not to have materialised.

The news adds to fears of a slowdown in the global smartphone market.

iPhone sales in the fourth quarter disappointed analysts expectations, while Samsung, the world's biggest smartphone and TV maker, recently reported its first quarterly fall in profits for more than two years.

ARM's chief financial officer Tim Score said: “There’s been quite a lot of focus on the slowdown in the high end or premium smartphone market, but there’s still a lot of growth in the medium and low end.”

Score added that ARM was diversifying its business, signing up new customers making chips for servers, smart devices and wearable technology, which ARM sees as growth areas.

“We’re just moving into a world where our non-mobile shipments are now more than mobile and I think that’s a trend that’s going to continue. ARM is no longer just a mobile play, it addresses the whole computing spectrum."

Score said a quarter of license agreements signed in the year were with new customers.

ARM’s shifting business strategy appears to be paying off, with full-year revenue jumping 24 per cent to £714.6million and pre-tax profit in 2013 climbing 32 per cent to £364 million.

The company said 50 billion ARM-based chips have been shipped since 1993, with 10 billion in the last year alone. ARM raised its full-year dividend by 27 per cent to 5.7p. Shares were down 4.57 per cent.

Start your day with The Independent, sign up for daily news emails
Sport
The Aviva Premiership trophy
rugby union All the latest from Twickenham
Life and Style
tech
Sport
Aston Villa manager Tim Sherwood
footballDanny Higginbotham: Tim Sherwood must play game of two halves to cause major upset
News
Caber is trained to help child victims of serious crimes testify
news
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Pricing Analyst

£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

Guru Careers: C# Project Team Lead

£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

Day In a Page

Fifa corruption: The 161-page dossier that exposes the organisation's dark heart

The 161-page dossier that exposes Fifa's dark heart

How did a group of corrupt officials turn football’s governing body into what was, in essence, a criminal enterprise? Chris Green and David Connett reveal all
Mediterranean migrant crisis: 'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves,' says Tripoli PM

Exclusive interview with Tripoli PM Khalifa al-Ghweil

'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves'
Raymond Chandler's Los Angeles: How the author foretold the Californian water crisis

Raymond Chandler's Los Angeles

How the author foretold the Californian water crisis
Chinese artist who posted funny image of President Xi Jinping facing five years in prison as authorities crackdown on dissent in the arts

Art attack

Chinese artist who posted funny image of President Xi Jinping facing five years in prison
Marc Jacobs is putting Cher in the limelight as the face of his latest campaign

Cher is the new face of Marc Jacobs

Alexander Fury explains why designers are turning to august stars to front their lines
Parents of six-year-old who beat leukaemia plan to climb Ben Nevis for cancer charity

'I'm climbing Ben Nevis for my daughter'

Karen Attwood's young daughter Yasmin beat cancer. Now her family is about to take on a new challenge - scaling Ben Nevis to help other children
10 best wedding gift ideas

It's that time of year again... 10 best wedding gift ideas

Forget that fancy toaster, we've gone off-list to find memorable gifts that will last a lifetime
Paul Scholes column: With the Premier League over for another year, here are my end of season awards

Paul Scholes column

With the Premier League over for another year, here are my end of season awards
Heysel disaster 30th anniversary: Liverpool have seen too much tragedy to forget fateful day in Belgium

Liverpool have seen too much tragedy to forget Heysel

Thirty years ago, 39 fans waiting to watch a European Cup final died as a result of a fatal cocktail of circumstances. Ian Herbert looks at how a club dealt with this tragedy
Amir Khan vs Chris Algieri: Khan’s audition for Floyd Mayweather may turn into a no-win situation, says Frank Warren

Khan’s audition for Mayweather may turn into a no-win situation

The Bolton fighter could be damned if he dazzles and damned if he doesn’t against Algieri, the man last seen being decked six times by Pacquiao, says Frank Warren
Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

Blundering Blair quits as Middle East peace envoy – only Israel will miss him

For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
Fifa corruption arrests: All hail the Feds for riding to football's rescue

Fifa corruption arrests

All hail the Feds for riding to football's rescue, says Ian Herbert
Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

The Kurdish enclave still resisting the tyranny of Assad and Isis

In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

How I survived Cambodia's Killing Fields

Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

How Stephen Mangan got his range

Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor