Arm Holdings lost its licensing battle with Qualcomm, and now they’re looking to make up for lost revenue the only way they know how: by punishing everyone else. Because nothing says “we’re sorry we lost” like sticking it to your partners with a 300% price hike.
For years, Arm has been the quiet backbone of the tech world, licensing its chip designs to giants like Apple and Qualcomm. But after getting their lunch handed to them in court, they’ve decided to go on the offensive. Enter the “Picasso” project, Arm’s ambitious plan to squeeze an extra billion dollars out of smartphone revenues over the next decade. Because clearly, the best way to win friends and influence people is to make them pay more.
Thanks to its recent trial, documents were uncovered that showed Arm executives had been discussing a potential 300% rate increase on their licensing fees as far back as August 2019 when Quacolmm had signaled its willingness to particiapte in the “Picasso” initiative.
Unfortunately, Qualcomm figured out its ARM development technologies and left Arm holding the bag, perse.
But wait, there’s more! According to a report from Reuters, Arm isn’t just content with raising prices; they’re also considering making their own chips. Because why not double down on the chaos? It’s like getting dumped and then throwing a tantrum by dating their best friend.
And let’s not forget the ethical angle. Arm assures us that all this is in the name of innovation and progress. Because if there’s one thing the tech world needs, it’s more companies preaching ethics while secretly plotting revenge.
In a twist of irony, Qualcomm’s win has thrown Samsung’s supply chain into uncertainty. Samsung, which had a three-year chip supply agreement with Qualcomm, has now reduced it to just two years due to the instability caused by this legal scuffle. So, while Arm tries to claw back revenue, Samsung is left wondering what the future holds for its chip supply.
This could also push Samsung towards its own Exnoys chip or to MediaTek as it’s already experimented with in its latest Galaxy Tab S10 Plus tablet. Either way, Arm may end up losing further revenue thanks to Qualcomm.
In summary, Arm Holdings is ready to shake things up, one price hike at a time. Whether this will lead to a tech revolution or just more expensive gadgets remains to be seen. But one thing’s for sure: Arm is no longer content with being the silent partner. They’re here to make noise, and they’re bringing their price tags with them.
