According to The Information, Apple pays ARM less than 30 cents per device for the ARM-based chips it uses in its mobile phones, computers, tablets and other devices. This amount is reportedly the lowest licensing fee among companies using the ARM design and accounts for 5% of ARM’s sales. The amount Apple pays is about half of what ARM’s other two major customers, Qualcomm and Mediatek, pay.The report states that ARM’s owner, SoftBank, is uncomfortable with this regulation. It is stated that when SoftBank acquired ARM in 2016, the company’s CEO Masayoshi Son considered revising the agreement but failed.
Apple extends ARM license until 2040
Despite this, Apple and ARM continue their cooperation. In September, ARM and Apple extended their agreement until 2040. This period is well beyond the normally 5-year agreement period. Apple is also interested in the open source RISC-V architecture, which does not require a license. Therefore, it is stated that this long agreement will provide an advantage to ARM.
Working with Apple gives ARM and other suppliers a huge advantage in terms of reliability. But Apple is also known for its cost-cutting strategies, which force the companies it works with to cut prices, sometimes even losing money. It seems that Apple has brought more customers to ARM, so it seems like it has settled for the lower price.
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