Yesterday, very sad information appeared in the thematic media that Arm, which developed the vast majority of Qualcomm and MediaTek chips designed for smartphones, plans to seriously raise the price tags for its solutions.
According to Reuters, British Arm, a developer of advanced technologies for manufacturers of single-chip systems, has adopted a long-term policy to increase price tags by 300% and is considering the possibility of creating its own chipsets to compete with its customers, as reported by Reuters.
For decades, Arm has been licensing its intellectual property to large companies such as Apple, Qualcomm, MediaTek, Microsoft, and many others that use Arm developments in their chips. To be more precise, Arm charges them a relatively small fee for each chip released based on its technology.
At the same time, Arm itself, despite its almost major role in the development of mobile technology, remains a small company compared to its customers, but Masayoshi Son, CEO of SoftBank Group, which owns about 90% of Arm shares, and Arm CEO Rene Haas decided to change this situation..
Apparently, the desire of the main shareholder to increase revenue from the Arm business has given rise to a long-term strategy of increasing licensing fees, which in 10 years promises to raise the company’s annual revenue to $ 1 billion.