ARM expects to control 50% of mobile chip market by 2015
Led by devices like the iPhone and iPad, ARM Holdings expects its reference chip designs to be found in 50 percent of mobile devices sold by the year 2015.
ARM-based chips are currently found in about 10 percent of mobile devices, and that number is expected by the company to increase to 15 percent by the end of 2011. But according to Bloomberg, ARM President Tudor Brown expects the company's share to explode in the next few years, reaching half of all mobile devices by 2015.
ARM currently plays an important role with Apple products, with the custom A5 processor found inside the iPad 2, while its predecessor, the A4, is found in the iPhone 4, fourth-generation iPod touch, and Apple TV, all released in 2010.
Apple's tremendous growth with sales of the iPhone and the new product category represented by the iPad have played an important part in the spread of ARM-based chips. And earlier this year, Microsoft announced it too would get into the ARM game with the next version of Windows to offer compatibility with the system-on-a-chip architecture.
Brown also said on Monday that he expects ARM to start generating royalty revenue from Microsoft by the end of 2012. While ARM is currently a major player in creating chips for devices like smartphones and tablets, the deal with Microsoft is expected to boost its presence in laptops as well.
The details come soon after a rumor surfaced that Apple, in its internal labs, built a test MacBook Air powered by the same low-power A5 processor found in the iPad 2. An anonymous source said the test MacBook Air "performed better than expected," though the device, allegedly built by Quanta Computer, was characterized as an "experiment."
Earlier this month, a separate rumor claimed that Apple plans to move its laptops from Intel to ARM processors "as soon as possible." It was said that Apple could begin the transition when 64-bit variations of ARM-based chip designs are available at the end of 2012 or by early 2013.
Apple began designing its own ARM-based chips starting with the release of the first-generation iPad, powered by its custom A4 processor. That became possible through Apple's acquisition of chipmaker PA Semi for $278 million in 2008.
ARM-based chips are currently found in about 10 percent of mobile devices, and that number is expected by the company to increase to 15 percent by the end of 2011. But according to Bloomberg, ARM President Tudor Brown expects the company's share to explode in the next few years, reaching half of all mobile devices by 2015.
ARM currently plays an important role with Apple products, with the custom A5 processor found inside the iPad 2, while its predecessor, the A4, is found in the iPhone 4, fourth-generation iPod touch, and Apple TV, all released in 2010.
Apple's tremendous growth with sales of the iPhone and the new product category represented by the iPad have played an important part in the spread of ARM-based chips. And earlier this year, Microsoft announced it too would get into the ARM game with the next version of Windows to offer compatibility with the system-on-a-chip architecture.
Brown also said on Monday that he expects ARM to start generating royalty revenue from Microsoft by the end of 2012. While ARM is currently a major player in creating chips for devices like smartphones and tablets, the deal with Microsoft is expected to boost its presence in laptops as well.
The details come soon after a rumor surfaced that Apple, in its internal labs, built a test MacBook Air powered by the same low-power A5 processor found in the iPad 2. An anonymous source said the test MacBook Air "performed better than expected," though the device, allegedly built by Quanta Computer, was characterized as an "experiment."
Earlier this month, a separate rumor claimed that Apple plans to move its laptops from Intel to ARM processors "as soon as possible." It was said that Apple could begin the transition when 64-bit variations of ARM-based chip designs are available at the end of 2012 or by early 2013.
Apple began designing its own ARM-based chips starting with the release of the first-generation iPad, powered by its custom A4 processor. That became possible through Apple's acquisition of chipmaker PA Semi for $278 million in 2008.
Comments
Led by devices like the iPhone and iPad, ARM Holdings expects its reference chip designs to be found in 50 percent of mobile devices sold by the year 2015....
I think your title is off. "Control" is almost certainly the wrong word.
ARM will never "control" the processor market the way Intel attempts to. They only produce and licence designs. Their goal isn't domination or control of the market, it's just making a good chip design.
Since 99% of Tablet are ARM Powered, which basically means Tablet are already 10% of the total Mobile PC Market. And this is amazing growth!!!
Apple moving closer to self-sufficiency. A natural development.
I see it that way too... now, about those displays...
It should be 10% of Mobile PC devices. That is Tablet, Netbook and Notebook.
Since 99% of Tablet are ARM Powered, which basically means Tablet are already 10% of the total Mobile PC Market. And this is amazing growth!!!
Yeah, I think you're right. Very deceiving title. I don't know one mobile device that doesn't use some form of their chipset.
Led by devices like the iPhone and iPad, ARM Holdings expects its reference chip designs to be found in 50 percent of mobile devices sold by the year 2015.
Tablets and phones will be about half the mobile market... not a huge surprise
ARM-based chips are currently found in about 10 percent of mobile devices, and that number is expected by the company to increase to 15 percent by the end of 2011. But according to Bloomberg, ARM President Tudor Brown expects the company's share to explode in the next few years, reaching half of all mobile devices by 2015.
More people buying phones/tablets than laptop right now. not a big surprise
The details come soon after a rumor surfaced that Apple, in its internal labs, built a test MacBook Air powered by the same low-power A5 processor found in the iPad 2. An anonymous source said the test MacBook Air "performed better than expected," though the device, allegedly built by Quanta Computer, was characterized as an "experiment."
"better than expected" could mean they though it could run 1 window okay, and it could run 2 decently.... until someone explains what "better than expected" is i don't buy this.... i would advise more people to follow this for now
Earlier this month, a separate rumor claimed that Apple plans to move its laptops from Intel to ARM processors "as soon as possible." It was said that Apple could begin the transition when 64-bit variations of ARM-based chip designs are available at the end of 2012 or by early 2013.
Apple began designing its own ARM-based chips starting with the release of the first-generation iPad, powered by its custom A4 processor. That became possible through Apple's acquisition of chipmaker PA Semi for $278 million in 2008.
This would be great--if they made a 11' laptop that costed like 900 that had like what, a 4 or 6 core ARM CPU? i don't see them being able to get enough performance to justify it right now. at least not for their CURRENT LAPTOPS.
possibility of education model only model?
Not sure how Appleinsider has defined the mobile chip market, but agree with other comments, that the numbers are way off. Today ARM absolutely dominates the market for mobile (as defined by most analysists), somewhere in the region of over 90% for mobile phones. ARM is used by almost every single chip vendor in the world, expect Intel. If we look consumer devices (basically anything a consumer buys in a electronics store, expect a PC) then ARM has this market sown up.
Some numbers:
- ARM shipped through it partners (silicon vendors) over 6bn devices (yes I said billion)
- Mobile accounts for a large proportion of this probably 60-70%
- It has 770 licensees for its CPUs
If you look at any typical smartphone you will have probably 3-4 ARM CPUs. One for the Apps processor, one in baseband, one for your combo wifi/BT chip, so there is three straight away!
I also noted that Appleinside believe ARM is growing off the back of Apple's devices like the iPhone etc. Although it is true that ARM benefits from growth in sales of Apple products and the reputation for powering some of the most iconic devices in the industry, Appleinsider I think misunderstands ARM's business.
It is in fact more accurate to say that when Apple entered the phone market ARM was the only real choice to use, as ARM is number one in this market. Apple has been using ARM CPUs since the first iPod, and in fact ARM and Apple have a relationship that goes back to the very founding of ARM, as a spin-out from Acorn Computers- An Apple competitor in the UK.
ARM's business is heavily royalty based (approximately 53% of revenue in Q1 for the Processor Division within ARM). So it is fair to say that volume shipments count. Although Apple is number one by value in the market, it is very low down the list when looking at shipment numbers (mobile phone total volume not smartphones). Q1 shipments: Nokia 108m, Samsung 70m, LG 24m, then Apple with almost 17m). Again the claim by Appleinsider is somewhat a stretch at the very least
Numbers I used form these presentations
ARM Q1 results presentation http://ir.arm.com/phoenix.zhtml?c=197211&p=irol-irhome
IDC Q1 mobile shipment numbers
http://www.idc.com/getdoc.jsp?containerId=prUS22808211
Cheers,
Kevin
Linkedin profile: http://www.linkedin.com/in/kevinmcintyre09
Nice post.
Nice observation.
@solipsism
Nice observation.
@DeanSolecki
Nice compliment!
Nice trend.
Not sure how Appleinsider has defined the mobile chip market, but agree with other comments, that the numbers are way off. Today ARM absolutely dominates the market for mobile (as defined by most analysists), somewhere in the region of over 90% for mobile phones. ARM is used by almost every single chip vendor in the world, expect Intel. If we look consumer devices (basically anything a consumer buys in a electronics store, expect a PC) then ARM has this market sown up.
Some numbers:
- ARM shipped through it partners (silicon vendors) over 6bn devices (yes I said billion)
- Mobile accounts for a large proportion of this probably 60-70%
- It has 770 licensees for its CPUs
ARM's business is heavily royalty based (approximately 53% of revenue in Q1 for the Processor Division within ARM). So it is fair to say that volume shipments count. Although Apple is number one by value in the market, it is very low down the list when looking at shipment numbers (mobile phone total volume not smartphones). Q1 shipments: Nokia 108m, Samsung 70m, LG 24m, then Apple with almost 17m). Again the claim by Appleinsider is somewhat a stretch at the very least
considering an aprox total of 1Bn PC's (THAT MEANS PERSONAL COMPUTER, NOT NECESSARY WINDOWS, I HATE WHEN PEOPLE FORGET THIS) shipped when 2008 ended, aprox about 400 million laptops right now in 2011-not counting broken ones or unused ones...
ARM has a huge % of market already, in terms of mobile computing device
I feel a compulsion to watch the movie "Guys and Dolls".
@kevin.mcintyre
Nice post.
Yes. Most people forget Apple was a co-founding partner of ARM (I think they had a 10% interest) and had a big say in the chip design (Apple used to design a lot of their own chips in the old days, and still does.)
Although it sounds odd to me to refer to baseband, BT and WiFi chips as "CPU's."
The AI article also makes it sound like ARM manufactures chips, but I'm pretty sure they just concentrate on designing excellent chips and then licensing their designs to others.
Normally really great articles, but this one is really poor and no research! [...]
Douché Kev. Great use of Google there.
Maybe the AppleInsider author should have said "All of this adds up to very bad news for Intel." It doesn't really matter if Apple ships 17.0 million ARM-based chips or 17.1 million. The point is that Intel is so locked in to supporting Windows and Office and their legacy x86 architecture that they have lost their focus on mobile.
It's like Detroit automakers and the U.S. oil companies. The automakers would prefer to make big, heavy, gas-guzzling SUVs because they don't need to conform to stringent air pollution laws. No need for expensive engineering, and they can sell tarted-up trucks for $60k. The oil companies love this because big, heavy, gas-guzzling SUVs create more demand for gas. A match made in heaven.
Same thing with Microsoft and Intel. Microsoft makes bloated, resource-hogging software. They can't help it. They've lost the ability to write lean, mean code. Intel loves this because bloated, resource-hogging software creates more demand for their latest hot-running power-sucking x86 chips. A match made in heaven.
Oh, and there's one more thing. This is a blog, not CNN. Opinions are fine on blogs.
@ Dick Applebaum
Nice trend.
@solipsism ... nice teeth.
Douché Kev. Great use of Google there.
Maybe the AppleInsider author should have said "All of this adds up to very bad news for Intel." It doesn't really matter if Apple ships 17.0 million ARM-based chips or 17.1 million. The point is that Intel is so locked in to supporting Windows and Office and their legacy x86 architecture that they have lost their focus on mobile.
It's like Detroit automakers and the U.S. oil companies. The automakers would prefer to make big, heavy, gas-guzzling SUVs because they don't need to conform to stringent air pollution laws. No need for expensive engineering, and they can sell tarted-up trucks for $60k. The oil companies love this because big, heavy, gas-guzzling SUVs create more demand for gas. A match made in heaven.
Same thing with Microsoft and Intel. Microsoft makes bloated, resource-hogging software. They can't help it. They've lost the ability to write lean, mean code. Intel loves this because bloated, resource-hogging software creates more demand for their latest hot-running power-sucking x86 chips. A match made in heaven.
Oh, and there's one more thing. This is a blog, not CNN. Opinions are fine on blogs.
As long as Windows requires x86 instructions, Apple will have x86 processors because virtualizing is a big deal, IMHO. But it is Apple we are talking about so who really knows.
As long as Windows requires x86 instructions, Apple will have x86 processors because virtualizing is a big deal, IMHO. But it is Apple we are talking about so who really knows.
Maybe one day in the future, a Mac will be able to have an Intel CPU as an optional extra for those that want it. Like a language card on an Apple ][
The AI article also makes it sound like ARM manufactures chips, but I'm pretty sure they just concentrate on designing excellent chips and then licensing their designs to others.
Well, the article says "ARM Holdings expects its reference chip designs to be found in 50 percent of mobile devices sold by the year 2015." No informed person should interpret that as suggesting ARM manufacturing their own chips.