Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile
    • Networking
    • PC Hardware

    ARM Warns of Mobile Chip Sales Slowdown, Curbs Hiring Plans

    Written by

    Jeff Burt
    Published September 4, 2012
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      ARM Holdings, whose chip designs can be found in more than 90 percent of smartphones worldwide, is scaling back its employee-recruitment efforts as worries mount about a continued slowdown in consumer purchases of computing devices.

      ARM CEO Warren East, in a Sept. 2 interview with the Financial Times, said the company expects that the trend of slower growth in sales during the first half of the year for many of ARM’s customers-including Qualcomm, Samsung Electronics, Texas Instruments and Nvidia-will continue in the last two quarters, a worrisome sign given that the second half of the year traditionally is particularly strong for chip makers.

      East’s warning also comes at a time when a host of device and systems makers-from Apple and Samsung to Nokia, Motorola and Amazon-are preparing to release a host of new products, in time for the crucial holiday shopping season. However, he said that the uncertain global economy is forcing many consumers to hold on to money they otherwise would spend on new computing devices, which will impact not only the device makers but also those companies that make processors and other components.

      “Many of the chip companies are indicating that they are not expecting an uplift, and mathematically, that will hit us,” East said.

      ARM designs low-power chips and sells licenses to those designs to Qualcomm, Samsung and others, who then add their own technologies on top of the designs before selling them to device makers. ARM-designed chips dominate the mobile market, including the fast-growing smartphone and tablet spaces, though Intel is looking to make inroads into those areas.

      At the same time, ARM officials also are looking to expand the reach of their designs into such areas as PCs, low-power servers and embedded systems.

      ARM also was hit Sept. 4 when Deutsche Bank analyst Kai Korschelt cut his rating on the company’s stock. Korschelt in a research note noted that smartphone chip prices are expected to fall, Intel’s chances of competing in the mobile space are improving and the ramp-up of Microsoft’s upcoming Windows RT-the version of Windows 8 that will run on ARM-based machines-could prove slower than expected.

      ARM will remain dominant in chips for both smartphones and tablets into 2015, as well as other component areas, such as basebands, touch-screen controllers and camera sensors. He also said that despite the stagnant growth in PC sales, ARM could gain some market share there, as well as in servers.

      However, Intel will continue to make its presence felt in the mobile computing space, Korschelt said.

      “It is in our view becoming clear that Intel is making meaningful progress in refocusing its processor architecture and road map to address the [about 2 billion] long-term unit low-power mobile computing market (smartphones and tablets),” he wrote, noting that Intel could gain as much as 10 percent of the market over the next three years, affecting ARM.

      East and other ARM officials have been dismissive of Intel’s mobile computing push, arguing that Intel’s business model doesn’t transfer well to the space. East also has said that ARM will become a larger player in PCs than Intel will in mobile devices.

      He told the Financial Times that, given ARM’s forecast for the second half of the year, the company is slowing its recruitment efforts, hiring fewer than the 200 to 250 engineers a year it brings on board.

      However, while the second half of 2012 might be slow, the overall prospects for device sales into the future are still strong, he said, particularly with the growing demand for more intelligent Internet-connected devices, from smartphones to computers in automobiles and appliances, all of which will need high-performing, low-power processors.

      “We get excited about ARM’s technology being designed into all sorts of infrastructure products that make phones work and allow your Internet-connected televisions to communicate with the Internet,” East said. “These sorts of changes unfold over multiple of years. They may be a little slowed by economic cycles, but they are an inexorable trend.”

      Jeff Burt
      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×