Replies to post #127139 on Intel Corp (INTC)

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Yes I know it is not in ARM's interest to do that now, what I am asking is, what would constrain them down the road if x86 was effectively dead, Intel and everyone else, was making only ARM chips?

What then stops them from massively hiking up royalties?

Nothing...in theory ;-) That's why ARMH trades at such a rich multiple...there is a perception that ARMH, at any time, could turn the screws on its licensees and jack up its royalty rates.

However, if ARMH did try to do that, ARM Architecture would be replaced very quickly by, say, MIPS, and everyone in the industry would rally around MIPS to get away from ARMH's insane royalty rates.