The seeming willingness of the press to hype the possibility of Apple buying UK based chip designer ARM would suggest some kind of deal is already on the table, but as far as anyone's aware, no official move has been made.
Indeed, ARM CEO Warren East told The Guardian, "Exciting though it is to have the share price pushed up by these rumours, common sense tells us that our standard business model is an excellent way for technology companies to gain access to our technology.
"Nobody has to buy the company".
Any proposed buyout of ARM whose chips can already be found in iPhone handsets - would cost more than the company's current £3.4 billion ($5.2 billion) market cap.
The $41.7 billion Apple has in cash and investment reserves means such a swoop would actually make a relatively small dent in the firm's pot of gold.
Nonetheless, it would still represent the largest purchase in Apple's history. So why, exactly, are the rumours flying?
Gaining an advantage
As The Unofficial Apple Weblog (TUAW) deduces, any purchase of ARM could give Apple significant - if short term - power over some of its biggest rivals.
ARM chips currently feature in hardware running Symbian OS, the forthcoming Windows 7 Series, and Android; in fact pretty most mobile devices including the Nintendo DS. Picking up ARM would give Apple a hand into the business of its competitors.
It would also fit with Apple's stated philosophy. Apple COO Tim Cook said in January last year he believed the company should "own and control the primary technologies behind the products we make".
ARM certainly fits that bill.
Cause for concern
But it isn't all as straightforward as some might believe.
As stated by The Inquirer, Apple previously owned a stake in ARM following its formation in 1990; the company selling its stake following slow sales of Apple's Newton PDA.
To go down that path again, the site claims Apple would need to be sure it would see a genuine return on its investment.
The Inquirer also suggests any advantage Apple gained over its rivals would soon dissipate, rivals tapping other chip manufacturers and moving on to different technologies leaving, the site concludes, Apple with a dud company on its hands.
Regardless, ARM's share price has risen by more than 3 percent since the Evening Standard mentioned the story.
News
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.
Top Stories
as
News
6 hours, 38 minutes ago
Supercell's Hay Day returns to China's App Store after four year absence
News
7 hours, 51 minutes ago
Take-Two's mobile bookings make 53% of their total and GTA 6's release date gets locked in
News
8 hours, 3 minutes ago
Minecraft celebrates its 15th birthday with discounts, in-game surprises and daily rewards
Feature
10 hours, 21 minutes ago
New release roundup: The best new mobile games from a battle royale to a console classic remake
Feature
May 16th, 2024
Behind the scenes: How adding sandwich offers to an idle merge game boosted three metrics at once
Events
Valencia Indie Summit 2024 | Europe | May 16th |
Digital Dragons | Europe | May 19th |
GamesBeat Summit 2024 | North America | May 20th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Nordic Game Spring 2024 | Nordic | May 21st |
Impact 2024 - Indie Games | May 23rd | |
MomoCon 2024 | North America | May 24th |
Morocco Gaming Expo | Africa | May 24th |
Popular Stories
Feature
May 14th, 2024
53 top mobile games in soft launch: Squad Busters, Battle Guys: Royale, Plants vs. Zombies 3, LEGO Hill Climb Adventures, and more
Feature
May 13th, 2024