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chipguy

03/05/13 1:26 PM

#116797 RE: thomo #116790

Yeah - that low volume stuff is annualising at 1bn units a year chipguy.

Why don't you do a bit of research first skippy.

ICs/SoCs with ARM cores in them are selling at ~10 billion units a
year. Like I said before, most of ARM's business is in the grubby
end of the market.

Let's do a little math then. In Q4 ARMH had revenue of $263m and
shipments of 2.5 billion devices. That averages to ~10.5 cents a
chip. Let's say of that 250m were smart phone chips at $20 a pop.

That means smart phones sales comprise $500m of its $263m in Q4
revenue. Whoops! I guess ARM gets a lot less money on smart phone
processors than you think.

Here's the secret skippy, Samsung and Qualcomm etc may be getting
$20+ for those smart phone chips but ARM only gets 20 or 30 cents
because ARM DOESN'T MAKE THE CHIPS AND SELL THEM, they
only license *some* of the IP that go into them.

So if smart phones = 250m * $0.25 = $62.5m

everything else = ($263m - $63m)/(2.5b - 0.25b) = 9 cents each.

Wow, smart phones drive ARM's average revenue per device from
about 9 cents each to about 10.5 cents. Can't wait to see what a
few million server chips per year at 50 cents each *might* do to
ARM's top and bottom line - boom straight to the moon Alice!