CASE ARM Flashcards
(7 cards)
What is ARM Holdings known for?
ARM Holdings is known for designing microprocessor architectures and licensing its intellectual property to semiconductor companies.
Example: ARM licenses its processor designs to companies like Apple and Qualcomm, who integrate them into their chips.
What is ARM’s core business model?
ARM uses an IP licensing model, earning revenue through upfront license fees and royalties based on chip shipments.
Example: A chipmaker pays ARM to use its processor design and then pays royalties for each chip sold.
Why did ARM choose licensing over manufacturing?
Licensing allowed ARM to focus on design and innovation without the high costs of manufacturing, aligning with its lean startup strategy.
How did ARM build its ecosystem?
ARM partnered with semiconductor firms, OEMs, software tool providers, and OS developers to support its architecture.
Example: ARM worked with real-time OS vendors to ensure compatibility with its processors.
What are the two main types of ARM licenses?
Core licenses allow use of ARM’s CPU designs,
architectural licenses let companies design their own cores using ARM’s instruction set.
Example: Apple uses an architectural license to design custom ARM-based chips for iPhones.
How did ARM ensure consistency across licensees?
ARM restricted modifications to its architecture and required compliance testing to maintain standardization.
Example: Licensees had to pass specific tests before selling ARM-based chips.
What role did branding play in ARM’s strategy?
ARM required branding on chips and public announcements of licensing deals to build credibility and visibility.
Example: Apple printed the ARM logo on the back of its Newton device.
