ARM Holdings Plc (ARM), the chip designer whose products power Apple (AAPL) Inc.’s new iPhones, rose to the highest in more than three months on predictions it will amass increased royalties from the use of its latest technology.
The shares advanced as much as 6.1 percent and were up 4.6 percent at 984.5 pence at 10:21 a.m. in London, the highest price since May 31 and the biggest intraday gain since July 24. The stock was the biggest gainer in the FTSE All-Share Index (ASX), adding more than 600 million pounds ($847 million) to ARM’s market capitalization.
The iPhone 5S will use ARM’s latest 64-bit technology, Apple said yesterday. The new processor carries a higher royalty rate and a higher chip value than current 32-bit technology, Andrew Dunn, an analyst at RBC Capital Markets, said in a note today.
“The iPhone 5S will represent a greater royalty opportunity for ARM,” Dunn said. “Should this mark the beginning of 64-bit in smartphones, this should help underpin ARM’s upward trajectory in overall royalty rate following a decade of declines.”
The adoption of the new chip as well as ARM technology in Apple’s new motion coprocessor chip will add as much as 10 U.S. cents in royalties for each iPhone 5S compared with the iPhone 5, taking the total to 50 cents to 60 cents per device, UBS analyst Gareth Jenkins said in a note today.
Among other suppliers, Imagination Technologies Group Plc (IMG) rose 3.3 percent in London, while Gemalto NV (GTO) was down 4.6 percent in Amsterdam after analysts said Cupertino, California-based Apple hasn’t yet incorporated its NFC chip technology.
Apple unveiled two new models yesterday. The high-end iPhone 5S with fingerprint-security features, a speedier processor and better camera will cost $199 to $399 and be available in three colors. The iPhone 5C will cost $99 to $199 with a wireless contract and comes in five different colors.
The 64-bit chip in the iPhone 5S will make the device work twice as fast as the iPhone 5, according to Apple. The new phones will be available in stores on Sept. 20.
To contact the reporter on this story: Peter Woodifield in Edinburgh at [email protected]
To contact the editor responsible for this story: Douglas Lytle at [email protected]
The shares advanced as much as 6.1 percent and were up 4.6 percent at 984.5 pence at 10:21 a.m. in London, the highest price since May 31 and the biggest intraday gain since July 24. The stock was the biggest gainer in the FTSE All-Share Index (ASX), adding more than 600 million pounds ($847 million) to ARM’s market capitalization.
The iPhone 5S will use ARM’s latest 64-bit technology, Apple said yesterday. The new processor carries a higher royalty rate and a higher chip value than current 32-bit technology, Andrew Dunn, an analyst at RBC Capital Markets, said in a note today.
“The iPhone 5S will represent a greater royalty opportunity for ARM,” Dunn said. “Should this mark the beginning of 64-bit in smartphones, this should help underpin ARM’s upward trajectory in overall royalty rate following a decade of declines.”
The adoption of the new chip as well as ARM technology in Apple’s new motion coprocessor chip will add as much as 10 U.S. cents in royalties for each iPhone 5S compared with the iPhone 5, taking the total to 50 cents to 60 cents per device, UBS analyst Gareth Jenkins said in a note today.
Among other suppliers, Imagination Technologies Group Plc (IMG) rose 3.3 percent in London, while Gemalto NV (GTO) was down 4.6 percent in Amsterdam after analysts said Cupertino, California-based Apple hasn’t yet incorporated its NFC chip technology.
Apple unveiled two new models yesterday. The high-end iPhone 5S with fingerprint-security features, a speedier processor and better camera will cost $199 to $399 and be available in three colors. The iPhone 5C will cost $99 to $199 with a wireless contract and comes in five different colors.
The 64-bit chip in the iPhone 5S will make the device work twice as fast as the iPhone 5, according to Apple. The new phones will be available in stores on Sept. 20.
To contact the reporter on this story: Peter Woodifield in Edinburgh at [email protected]
To contact the editor responsible for this story: Douglas Lytle at [email protected]