Chip developer Arm, whose technology is in almost all smartphones, disappointed investors with its first quarterly report since returning to the stock market. After the figures were announced, the Arm price temporarily fell by more than eight percent.
Arm missed analysts’ market expectations with its sales forecast for the current quarter. The British company promised sales of between $720 and $800 million. Analysts on average expected more than $773 million. Arm justified the wide margin in his forecast on Wednesday by saying it was unclear exactly when the licensing agreements would be concluded.
The smartphone market shrank
The smartphone market has been shrinking for months – and Arm, as the central supplier, is also feeling the consequences. Based on the chip architectures designed by Arm, Apple develops the processors for its iPhones – but now also for Mac computers. The semiconductor company Qualcomm, whose chips run many Android smartphones, also uses it. Customers pay royalties to Arm for use of the chip architecture.
Last quarter, Arm increased revenue to $806 million from $630 million a year earlier. The final result was a loss of $110 million, after a profit of $114 million in the same quarter last year.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
