Rumors: Apple To Buy ARM Holdings

Rumors suggest that Apple has recently purchased Intrinsity, one of the biggest ARM based developers, in addition to its previous purchase of PA Semi.

Now, in addition to these two chip companies, there are now rumors swirling that Apple may also be interested in not only simply buying AMD chips, but all of AMD, lock, stock and barrel, as well! To top all of this, now comes even more rumors that the cash rich Cupertino giant may also be eyeing buying out British based ARM holdings as well!

The London Evening Standard is reporting that Cambridge base ARM Holdings is being seriously considered as a possible take over acquisition by Apple, and stated:

"A deal would make a lot of sense for Apple,” said one trader. “That way, they could stop ARM's technology from ending up in everyone else's computers and gadgets.” Traders reckon a bid would come in at around 400p a share, valuing ARM at more than £5.2 billion."

Arm, by the way, just happens to sell more chips than all of the other chip manufacturers combined, Intel and AMD included, and since Apple is the single largest purchaser of ARM chips it's only natural that Apple, flushed with a whopping 40 billion dollars plus, just sitting pretty in the bank, would also be interested in the idea of bringing all of ARM in-house.

The interesting thing about ARM was that it was originally created by Apple in partnership with Acorn of Britain, because Apple, at the time, needed and wanted a really powerful RISC base chip for use in its then Newton Message Pad. However, ever since and after Steve Jobs killed that particular device there was simply no longer any reason or need for Apple to continue its association with ARM, so it just simply sold off its shares in order to help consolidate it's books.

Apple, of course, wouldn't necessarily need to actually stop selling ARM chips from rivals such as HTC, DELL, Motorola, etc.. Apple, if it wished, could simply use revenues from ARM sales to its competitors to help finance super ARM chips that it could develop exclusively for its own use, thus enabling Apple, to sort of speak, kill two birds with one stone!

In conclusion, whether or not these rumors are just that - rumors, that I really don't know. One thing that I do know, however, is that if true, they could have a very huge impact not only on Apple itself, but indeed the entire world of tech as well, and this goes especially for the mobile sector! Buying out ARM holdings, by Apple, could be one acquisition that could also significantly alter the entire face and course of technology, and that for years to come!

And that's my 2 cents 4 this Thursday, April 22, 2010

THIS JUST IN: The SFGate has an interesting post on the reasons why Apple won't be buying ARM here!