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Report: Apple Pays Less Than 30 Cents in Royalties to Arm Per Chip
(www.macrumors.com)
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this post was submitted on 29 Nov 2023
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So… for every 10 million devices Apple sells, ARM makes $3m? Last year Apple sold 232.2 million iPhones, 60.4 million iPads, and I can’t find a statistic for Mac sales in 2022 only 7 million in a particular quarter, so maybe 21-30 million. We’ll say 30.
That’s ~320 million devices at 30¢ each (and doesn’t include AirPods, Apple TVs, Watches, HomePods, or any other ARM based device Apple sells). That’s $96m dollars for the license to an instruction set Apple helped create, used for chips Apple designed, and that Apple pays to have fabricated.
Nearly $100m a year on three product lines that don’t use ARM Holdings’ cores, or require ARM’s involvement in engineering or manufacturing, only the instruction set seems fair to me.
When you put it that way, Apple may be getting ripped off!