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I once read an article where the CEO of ARM reasoned against raising prices because its partners would then have less healthy businesses. I never forgot that
by nashashmi 10y ago
I once read an article where the CEO of ARM reasoned against raising prices because its partners would then have less healthy businesses. I never forgot that piece of wisdom.
But now with this acquisition, is there any room for such generous mentality?
- venomsnake 10y agoIt is not generosity. It is knowledge of your own business model. ARM wants to earn 1penny on every chip sold, but to put chips everywhere. So increasing royalties, but preventing market expansion is bad. Especially with the internet of appliances rapidly approaching.
- ma2rten 10y agoNot just that, it also prevents other companies from entering this market. Maybe forward thinking is a better term that generous.
- dingo_bat 10y agoI'm curious. Does ARM get royalties even on custom designed chips like apple's? Or only on reference cores?
- masklinn 10y ago> Does ARM get royalties even on custom designed chips like apple's? Designing custom cores requires holding an architecture license which is ARM's highest-level license (beyond the perpetual multi-use — use a core in any product indefinitely — and the subscription — use any ARM product for a set duration). There are about a dozen architecture license holders.
- SixSigma 10y agoThat's standard supply chain theory. You will read it in books about the Toyota Way.