ARM Holdings, the British semiconductor company whose processor chip designs power most smartphones reported its earnings for Q4 2013. While the earnings were up 7% year on year, it fellow below analyst estimates owing to slowdown in smartphone sales. The company was estimated to rake in $138 million but reported processor royalties of $130.4m in the fourth quarter of 2013.
“In Q4 2013 ARM’s processor royalty revenue grew faster than the overall semiconductor industry, however the degree of outperformance was impacted by slower sales of chips for high‐end smartphones,” said ARM.
ARM noted that the mix of chips sold had gravitated towards high volume, low ASP products like ARM based microcontrollers and smartcards which have an average selling price of under a dollar. Slow down in growth rates of smartphones have affected ARM as well like all major smartphone manufacturers. Sales of ARM based chips have grown 35 percent and the company’s partners sold 2.9 billion ARM based chips in Q4 2013. This included 520 million Cortex A class processors and 140 million Mali GPUs. The company signed 26 processor licenses with 22 licensees including three licenses for their ARMv8- A 64 bit technology, two Cortex A50 series processors.