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Apple Refuses to Increase Payments to Arm Despite IPO Pressure

Despite a push from Arm for higher payments, Apple maintains its position, contributing less than 5% to Arm's total sales.

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Overview

  • Apple Inc. has reportedly decided not to increase its payments to Arm Holdings, despite pressure following Arm's recent initial public offering.
  • Arm has been pushing Apple to pay more than $0.30 per iPhone for its intellectual property, but Apple continues to pay less than 30 cents per device, the lowest rate amongst Arm’s clients.
  • Apple's contribution to Arm’s total sales is less than 5%, approximately half of what Qualcomm and MediaTek contribute.
  • The contract between Apple and Arm, originally set to expire in 2028, has been extended beyond 2040.
  • This refusal by Apple to increase payments comes at a time when the global smartphone market is seeing an upturn in sales, led by Apple’s iPhone 15.