Apple pays Arm less than $0.30 for each device sold

2023-11-29 17:44:30

Despite developing its own processors, the Apple it still needs to use technologies from other companies to ensure the proper functioning of its components and devices. And one of these companies on which it depends is Armwhich belongs to the SoftBankfrom Japan.

It turns out that Arm is not very satisfied with Apple. According to The Informationthe CEOChief executive officeror executive director.”>1 do SoftBank, Masayoshi Son, brought together company employees in 2017 and made some comments about Apple. According to him, despite the Cupertino giant being one of Arm’s largest customers in volume, the revenue from the American company corresponds to Less than 5% of Arm’s total revenue (around US$524 million em 2022).

The reason for Apple’s low share of the chip developer’s revenue would be the low remuneration paid by Maçã. The Cupertino giant gives Arm less than US$0,30 per device (iPhones, iPads, Macs and Apple Watches) sold by licensing the intellectual property of the chips — the lowest fee received by the company. A Mediatek it’s at Qualcommin turn, would represent approximately 10% each of Arm’s revenues.

Son also said that Apple pays more for the plastics that protect iPhone screens than for Arm’s chips. Despite trying to make Maçã pay more for the company’s technology, the agreement between both companies was renegotiated in September this year, now in effect until after 2024, and prices continued to be unfavorable for the chipmaker.

The director of Arm would have even, in 2016, called Tim Cook (Apple boss), saying he would increase licensing fees, although Cook referred to the agreement between the companies to thwart the plans. The chipmaker even tried to increase the amounts paid by other customers, but this idea did not come to fruition either.

Even though it receives proportionally little, Arm is also concerned about the possibility that Apple will stop using its industrial property in the long term — when using the technology RISC-Vfor example, which has free licensing, although it would still take a decade for the adoption of this solution to become viable.

via AppleInsider

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