ARM Gets Boost From Smartphones While PCs Hurt Intel, AMD
ARM’s strong first quarter, bolstered by mobile devices, is a stark contrast to Intel’s and AMD’s struggle with a faltering PC market.As chip makers Intel and Advanced Micro Devices continue to see their bottom lines impacted by the decline of PC sales worldwide, ARM Holdings is seeing its financial numbers rise, thanks in large part to the growing popularity of such devices as smartphones and tablets. Officials from both Intel and AMD earlier this month announced first-quarter earnings that saw both revenues and income fall as the company try to expand into new growth areas and reduce their dependence on the PC market. Global PC sales continue to slow as consumers and business users turn their focus and tech dollars to mobile devices. It’s those devices and others that continue to give a boost to ARM, whose chip designs are found in the bulk of smartphones and tablets on the market today. At the same time, ARM-based chips can be found in such connected devices as smart TVs and sensors. The company—which designs low-power chips and licenses those designs to companies such as Qualcomm, Samsung and Texas Instruments—saw first-quarter profits jump 44 percent, to $136.3 million, and revenues grow 28 percent, to $263.9 million. Company officials said 2.6 billion ARM-based chips shipped during the quarter, a 35 percent increase over the same period in 2012.
“As consumer electronic and embedded devices are increasingly becoming smarter and more connected, we’re seeing our customers choosing ARM’s technology for high performance and low-power, and their demand is driving both our licensing and our royalty revenues,” Warren East, ARM’s outgoing CEO, said during an April 23 conference call with analysts and journalists to discuss the first-quarter numbers.