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“ARM: The $32B Pivot and Revolution”

Posted on 26. July 2016 Written by Marcel Weiss

Jean-Louis Gassée at Monday Note on ARM’s business outlook:

None of these opportunities, from ubiquitous but low-end IoT devices, to high-end but low volume Cloud servers, promise higher revenues and profits… which might explain the generally expressed skepticism regarding the high $32B offered for the ARM Holdings acquisition.

Or maybe Masa Son is betting on a completely different factor. ARM has a de facto monopoly position on SOC and embedded applications. This leads to pricing power, an aspect that is, according to Warren Buffet, “the single most important decision in evaluating a business”.

Simple in theory, just turn the screw. Harder in practice when the largest volume opportunity is in the lowest price segment.

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Analysis and links to articles on the big picture of the tech industry and the networked information economy.

Author: Marcel Weiss is a writer, consultant and fighter for pareto-optima. He is thinking and linking from Berlin, Germany.

contact: marcel@neunetz.com

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