News & Analysis
ARM success could trigger takeover bid, says analyst
Peter Clarke
10/12/2009 9:34 AM EDT
Scemama has predicted that ARM might be taken into ownership by its semiconductor and equipment licensees, or at least a blocking holding be taken, to prevent ARM falling into the hands of a single private-equity or industry company. Alternatively, ARM could be placed under the control of a non-profit foundation, in a similar manner to the way in which Symbian and its mobile phone operating system was controlled prior to its acquisition by Nokia.
The driving force behind such a change in ARM ownership is a shift towards computing based on ARM-Linux and away from Intel-Microsoft over the next technology cycle, according to Scemama. "First, we believe ARM processors will match Intel's performance while beating them on power consumption and possibly cost. Second, we expect PC manufacturers to switch from Intel/Microsoft OS-based platforms to ARM/Chrome OS-based platforms beginning in 2H10 to reduce their dependence on Intel and improve margins," said Scemama in a note to clients.
As that momentum gathers pace Scemama believes Micrsoft will be forced to declare its support for high-level Windows operating systems running on ARM processors. "Third, with ARM-based PCs gaining traction with consumers, we believe ARM could receive support from Microsoft and port Windows to the ARM architecture. We estimate ARM could capture 30 percent of the notebook PC processor market by 2014, creating a major disruption to the Intel-Microsoft domination of the PC market," Scemama said.
The analyst is not the first to predict success for ARM in the netbook/smartbook market. But he has taken the analysis deeper and reckons that the free availability of ARM stock could make the company vulnerable to a takeover bid.
Long before ARM enjoys the financial benefits of increased significance in the netbook, notebook and personal computer markets, its stock price could start to rise making it an acquisition target. But at the same time the strategic nature of ARM's position in the ecosystem it has created could make its independence important to such companies as Qualcomm, Broadcom, Apple, Nokia, Google and TSMC, said Scemama.
"A takeover is quite likely. But not by Intel," Scemama told EE Times. "I think it will be a consortium of the chip companies and electronics OEMs that have a strategic interest in ARM," he added.
One reason for ARM's vulnerability is that its stock is 100 percent available through its listings on the London Stock Exchange and Nasdaq, Scemama said. "Companies like Apple, Nokia, Google, IBM, TSMC; they are needing ARM to be independent. They could make a pre-emptive move."
|
|
|
|
|
someEmbeddedGuy
10/12/2009 9:49 PM EDT
Seems like the Intel acquisition is a long shot... I would hope there would be some anti-trust challenges for that one. There would be a true loss of genetic diversity in the processor world.
Sign in to Reply
Adam Bennet
11/24/2010 2:27 AM EST
The current technological progress is so fast that it someties difficult to follow it. Computing systems are updated to the absolutely new level. ARM Holdings outperform Intel in order to improve netbook and smartbook markets and it's great. Computers make our life more simple as a lot of work can be done with the help of IT systems and, therefore, we save our time. Let's see, we can even do a lot of things with the help of online services without leaving the comfort of our home. We can order food, make purchases and even take online installment loans via Internet.
http://ameriloansearch.com/installment-loans/online-installment-loans.html
Sign in to Reply
jackOfManyTrades
10/13/2009 3:30 AM EDT
"Cambridge, England"
My country's not called "England" any more that yours is called "Texas". It's the "UK".
Sign in to Reply
embeded
10/15/2009 1:00 AM EDT
It's a HUGE jump to say that ARM/Linux will become so dominant that Microsoft will bow to pressure and port Windows 7 to the ARM architecture. This is viable only in the netbook arena (Intel clearly will maintain the lead in more powerful devices), and I'm not sure just how big netbooks will ultimately be (have you seen the drop in laptop prices recently?).
ARM will need something like a 2:1 cost and power performance advantage for it to displace Intel/Microsoft in the minds of most consumers. Otherwise the average consumer just won't bother with learning Linux and an unfamiliar new way of doing things. I just don't see ARM getting that kind of advantage.
Sign in to Reply
Peter Clarke
10/19/2009 6:29 AM EDT
Embed-ed
Your points about the inertia associated with the incumbent (Intel-Microsoft) are well made.
However, one thing you don't discuss though is the role of different manifestations of Linux such as the Chrome browser and the Android operating system, which could quickly be very acceptable to the consumer. Is it not arguable that these days Google is more entrenched than Microsoft these days?.
As to the price crunch on laptops...i believe some people would pay a PREMIUM to have a smaller computer that they can carry around without hurting their back and with a battery-life that lasts all day.
Of course they might miss the big screen, but they can't use a big screen conveniently on the road, on the plane...and perhaps they can link up to a bigger screen when they get home...or get to work...if they need to.
Sign in to Reply
Louie M
10/20/2009 2:22 AM EDT
As a blogger you should be looking at Google Trends to see what the latest trends are going to be. Google Trends has always been useful to everyone. Google Trends is sometimes a wonderful metric for finding out just how illiterate our citizens are, and showcasing the lack of intelligence on their part recently, one of the top searches on Google Trends was for the word austere. If you had to look up austere, go get some href="http://personalmoneystore.com/payday-loans/ ">payday loans for a dictionary and then either drop it on your head, or get a lawyer and sue your school district, because you didn't get your money's worth!
Sign in to Reply
The MicroMan
10/21/2009 10:00 PM EDT
There is a Dallas, Texas. Nobody would argue whether it was also in the United States. Why the beef about Cambridge?
An acquisition of ARM by Intel would be a disaster. ARM is an IP licensor(er?). Intel punches out expensive chips. Intel ejected its hand in ARM when it sold off (most of) its interest in XScale. True, Intel would like to eliminate its competition.
Consumers don't give a darn what operating system is in their electronic gear. What's running your set-top box? If it works, and it is easy to figure out, people will buy. Nobody would miss a bloated bag of software that crashes. Or they're used to it enough on one platform that they'll accept it from another. And if it sells for $200 rather than $300, they'll buy even more.
Sign in to Reply
ibinger
9/15/2010 10:55 PM EDT
While we are not trying to replicate in these filters, [url=http://www.google.com/]google[/url] the FSE topology allows equalization beyond the Nyquist frequency of half the symbol rate, hardening the system to aliasing effects.
Sign in to Reply
ibinger
9/15/2010 10:55 PM EDT
http://www.google.com/
Sign in to Reply