Apple rumor roundup: Intrinsity behind the A4, ARM being eyed
By Darren Murph 
posted April 22nd 2010 7:22AM
posted April 22nd 2010 7:22AM
Mama always said that downpours followed Spring showers, and sure enough, the Apple news has been flowing hot and heavy overnight. For starters, an IEEE Spectrum report has people talking once more about Intrinsity; if you'll recall, rumors flared up earlier in the month about Apple nabbing said company, similar to the way it acquired P.A. Semi way back in the naughties. Now, it seems that round two of those whispers are gaining steam, with some analysts suggesting that without Intrinsity's expertise, there was simply no way the silicon within the iPad could've been pushed to 1GHz in time for launch. In related news, we're also hearing that Cupertino is interested in acquiring ARM Holdings, and considering just how much business Apple pushes ARM's way, it's not illogical to imagine Apple wanting to just bring ARM in-house. If the deal went down, Apple would obviously hold a huge amount of control over whether or not ARM chips ended up in rival products, and if it yanked those Cortex slabs out from the market place, you can bet there would be a mad scramble to create a competitive portfolio to serve those suddenly chip-less product makers. Finally, a new iPhone OS 4 (beta 2) video has surfaced, giving the world a solid look at a new circular side-swapped animation that occurs when switching apps -- head on past the break to check it out, and give those links below a visit for more of that succulent nitty-gritty. 
man, I would not want to see ARM being hostile takeover like this.
@kingofwale I agree, I had to look at Samsungs cash position seeing as how they want to be the #1 chip manufacturer in the world. They have a mere 7 billion, which is plenty more than ARMs mkt cap of just under 2 billion. That said, Apple has this money to just splash around, but a Samsung acquisition is much better for the industry than an Apple acquisition given their respective business practices.
@kingofwale
theres no mention of it being a hostile takeover
although if Apple does acquire ARM then there will be huge void left to fill
@ushpiy
Yeah, I don't really see it as "hostile". As long as the consumers benefit though, yay
@Outsider
I shoudl clarify, I'm not implying takeover will be benefitting consumers (probably won't).
@kingofwale ooof, just saw from the source that the bid, if made, might be above 5B pounds.
@ushpiy, you'll notice that the financial industry stopped using the term "hostile" in the 80's for the most part. This is for more than one reason, as companies now see a strength in cooperation and a value of money over pride (neither of which are bad things), a knowledge that it isn't worth the fight, amongst other reasons. If you read the comment as "takeover", "merger", and/or "absorbed" and omit "hostile" kingofwolfe's point is just as valid.
@juanvaldez Kraft's buyout of Cadburys, sure started off fairly hostile.
@kingofwale It appears Apple learned nothing from Microsoft's legal problems in the 2000s; depending on who's in the White House, the US can be somewhat unhappy about abusive monopolies.
@kingofwale
It's ok. If there is a God he will not let this happen.
@CRA1G Obama has to be worried about being called a socialist, especially if this happens before the next election, and the Republican's are in the pockets of multinationals. It's a lose-lose in a lot of ways.
@kingofwale Me neither... I just hope that this is blocked somehow by the industry. IMO, a bunch of industry players need to come together in some consortium and make a counter bid or something...
Oh an that little animation: doesn't is look like its moving between "cards"? lol...
@CRA1G And Samsung would not be a monopoly.
FOr your information, Samsung also makes phones and other products that can use the processors. Potentially, Samsung has even more products that can use ARM processors.
So be careful when you throw out Apple and monopoly crap.
All in favor to transfer to MIPS say I
@juanvaldez
Its also important to note that market cap is just a part of the valuation of an acquisition. You have to take into account this value in multiples. In the current market condition this would equate to 5 times multiples, meaning an ARM acquisition would be valued between 8 - 10 Billion, more than Samsung's cash at hand. Apple has, as of Tuesday's earnings call, $41.5 Billion in cash reserves. They could buy ARM for $8 Billion in cash (20% of their cash reserve) and not even feel it. Competitors would be shook!!!
@kingofwale
"blame it on the vodka, blame it on the henny
blamd it on the bottom line, got you feeling dizzy
blame it on the g-g-g-google...
@HawtDawg So its okay for Google to go around and gobble up shit and not Apple?
Okay.
Oh, Ddidn't Google buy some company made up of Former Apple and PA Semi people.
But oh, thats okay.
@MacArtStyle
actually apple only has 31b in case
http://www.google.com/finance?q=NASDAQ:AAPL&fstype=ii
@juanvaldez .. WTF are you talking about ?
(a) ARM is a UK company so it is up to the UK government to decide whether to allow this to go through and (b) mergers particularly of this size are irrelevant to most people.
@SCXFAN Yeah, but Google buying that company won't result in a near-monopoly over mobile microchips.
@derp
You sound like a total fanboi with no objectivity. Technologies like these which are vital to every electronic gadget out there are best when independent. Once it's taken over by another consumer products company, it is bound to be influenced by business politics and innovation takes the back seat. Google/Apple doesn't matter. It'll be the same result no matter which other big company gobbles it!
@SCXFAN
When did I say anything about Google? I wouldn't want them to buy ARM either.
@DefPoet I checked on Google finance before, you their cash on hand is as of end of 2009, not current information
@taligent, if you think the US DOJ cares where a company comes from then WTF are you talking abut? Firstly, I was responding to a comment, not something I brought up myself. Second, if the UK does allow this, it still has to go thru the US.....um...duh.
@DefPoet That information is old and inaccurate.
@DefPoet .. Actually it has 33 billion in more liquid assets and another 15 billion in longer term investments.
It only needs about 8 to buy ARM.
Not to mention those results are from last year so we have an extra 4 months worth of profits that aren't shown.
@MacArtStyle Other things can play into a purchase though, it's hard to find the liabilities Samsung has, but if they can afford to take a loan to make a purchase, then why not? Also, stock issuances can be made. All that said, yes, Apple can afford more than Samsung. The London Standard thought a bid from Apple would come in at the lower end of what you say (which I previously posted elsewhere) at about 5.2B pounds ($8B).
@derp So them buying that large mobile advertising company won't make them a monopoly in internet advertising?
Okay.
@kingofwale Animation swipe looks cool. Can't wait for the new OS.
@juanvaldez .. Can you please clearly articulate how the US DOJ has jurisdiction over a UK based company ?
Because a very similar situation happened with the GE/Honeywell merger which the US approved and the EU rejected.
@taligent They don't have jurisdiction over ARM, not at all. But there would be joint jurisdiction to approve any merger, right?
"Because a very similar situation happened with the GE/Honeywell merger which the US approved and the EU rejected."
This case is my exactly my point, but in the reverse. That said, this is the US and the UK which support big business more than any two countries. So, if proposed, I wouldn't necessarily hold my breathe waiting for a rejection.
@taligent UK would actually be the regulating authority here from that side of the pond, right? I don't think it's the EU, but I could definitely be wrong there.
@kingofwale Ah, I get it. Soon there will be Apple Search, Apple Mail, Apple Calendar, Apple Video, Apple Maps....
So Samsung would be a better buyer than Apple because of their "respective" business practices? You must have been asleep for the whole LCD "price-fixing" fiasco.
Calling Apple a monopoly, goes to show you do not know what a monopoly really is. Apple creates a closed platform - you know, like Nintendo, Sony, Dyson, etc. That does not make them a monopoly.
This would be very beneficial to Apple product users.
@kingofwale This is is all a plot of monopoly of the market. What about the free cloud computing? Just like the banning of Flash, this speculation of controlling ARM powered smartphone (by acquiring it) is a yet another form of monopolization. Reactions - http://bit.ly/4-0-OS-iPhone-reactions
@kingofwale
ARM was started as a joint venture by Apple and Acorn. Apple had to sell their stake back when they were struggling to stay afloat.
So it seems unlikely this is a hostile takeover. More like a family reunion.
Just for those who were unaware unlike folks like Google, Apple has had a direct hand in many technologies we see today :)
@kingofwale
Apple started ARM in the 90s, in conjunction with their Newton product. They sold their stake in ARM after they cancelled the Newton.
So all this means is that ARM would be coming back into the Apple family, where it belongs.
@juanvaldez Come on man Samsung is the worst company I do not want to give them any business at all after my experience with THE POOREST QUALITY products I ever bought.
@Outsider
you really think consumers will benefit from this?! there is seriously NO way any consumers will benefit from this. It will simply prevent other companies from acquiring chips from ARM.
The only benefit will be for apple since it'll bring their own costs down, cutting out the profit that arm makes and getting chips at cost... but if you think for one second they're going to pass those savings on to you, you're insane.
@Outsider
and now i read your second post... great job engadget, not letting me delete or alter my previous comment to say I "agree"...
@kyphem I think you are looking at their products rather than their subcomponents. Screen on the iPad - Samsung. Flash memory - Samsung. This list within the top quality products from Apple goes on and outside them too.
End of the day? Trust me, you want the hummingbird in your next smartphone.
@jaffreywali
I cant believe this uninformed crap is highly ranked. Quit spewing this garbage to make this stupid rumor acceptable in your fanboy eyes.
Apple and VLSI infused cash into ARM to get development on the ARM6 for their products. Apple then sold all the stock after ARM did what they wanted and was able to function on their own.
By your stupid logic, then many of these corporations belong to another. Look MS bought out Apple stock to help them out when they were nothing. Apple owes MS big time right?
What a joke.
OH YEAH AND THIS RUMOR IS HOGWASH:
http://www.pcmag.com/article2/0,2817,2362956,00.asp
Thankfully, the CEO of ARM has some common sense.
I hope whoever started this rumor enjoys whatever stock price manipulation they were going for.
@CRA1G It's not a monopoly. Its vertical integration.
@brokensticks Qualcomm could do it on their own.
@ravissimo ARM Holdings does not fab chips btw.
@kingofwale The multitasking is not what we expected, but its still great! The customization of the folders and changing of wallpaper background (working mode) is a bonus.
The iAd is also impressive, if you're a developer. That 60/40 deal (you got the 60 share). Is pretty sweet, compare to other adnetwork today. Reactions--- http://j.mp/os-4-0-by-iphone
I was reading just over a week ago that they wanted to move just about everything Samsung was doing for them, with the exception of NAND, in-house. I guess this will just strengthen their abilities in that department.
@juanvaldez Man, as much as I like Apple, I prefer them sticking to their market share, thus being an option for the customer. If they start to dominate the environment I'll get worried.
@Atkins I have no problem with them expanding their market, I actually want to see them do that. But I want to see them grow organically, where they make developments and innovations; where they succeed they may help the maturation of a product market, where they fail they do not affect the product market negatively as a whole.
Where they expand by a merger, in the manner they do in this article, where they can succeed and hurt the market, and fail and hurt the market....well, that just sucks.
Apple buying ARM would be scary for the phone industry IMHO. Talk about hamstringing your competition and halting the great progress we've seen in the smartphone industry in the last 2 years.
@DeoreDX
Apple loves hindering the progress of the market if it means they can come up with more ways to troll patents and let loose their legions of lawsuits and their effective attempts at stifling competition.