Silicon Valley
Vol 2 Chapter 101: ARM and Apple
"Oh, yes, we must strive to reach a cooperative relationship with Apple!!!" Henry left with a deep smile and explained to George Moore in particular.
In fact, without Henry reminding, ARM will try its best to cooperate with Apple. In the current environment, few companies will use ARM chips, but if Apple wants to launch the handheld computer Newton, it just needs chips with low cost and low power consumption. In the market, only ARM's chips meet Apple's requirements. Therefore, the two parties have the basic conditions for cooperation!
George Moore nodded and said: "Don't worry, Mr. Williams, I will definitely take the Apple user!!!"
"That's good!" Henry responded and walked out the door.
ARM was acquired by Qualcomm and no longer accepts Apple’s investment.
The reason why Apple invested in ARM was only to ensure the supply of Newton chips! If the same effect can be achieved without investment, Apple will not spend the wronged money to invest in ARM. At this stage, ARM is obviously not making money. In order to save money, it only set up a chip design department instead of establishing its own chip factory. Instead, it finds other companies to OEM for production!
Therefore, Apple would never invest in ARM if it had to do it!
Actually, Apple doesn't value ARM very much. In the past life, Apple didn't do Newton, so it sold ARM's shares cleanly!
Apple is just like something, after finishing, put on pants and leave! ! ! Unexpectedly, after a few years, ARM Ugly Duckling became a white swan, Apple's eyes were red, crying and crying, begging her to give herself another chance! Well, after spending a lot of money, Apple has the right to "take off pants" again! ! !
After Henry left, George Moore negotiated with people from Apple.
"Mr. George Moore, we at Apple hope that ARM can design a chip specifically for Newton and authorize Apple to produce it ourselves!!!" Ronald Reid, the leader of Apple's negotiation team, said very strongly. This time Apple has a lot of negotiating teams, including technical staff, business staff, legal staff, financial staff, key negotiators, and recorders. There are 13 people in total, which is more than ARM's R&D team! And ARM’s negotiating team has only six people, less than half of Apple’s.
Because Apple has not invested in ARM, it cannot get preferential prices from within. Therefore, Apple has been very strong in the negotiation process, so that it can win more benefits for itself! ! ! Sending so many people over will be able to overwhelm ARM in the first place! Ronald Reid, the leader of the negotiating team, spoke with an imperative tone, behaving very strongly!
ARM has just been established, little-known, in a baby, and Apple, as a world-renowned computer company, is already a giant. Naturally, others have strong capital and confidence!
George Moore frowned slightly. There is no problem in designing the chip for Apple, but authorizing Apple to produce it by itself means that ARM has given up a large portion of its interests. Although ARM does not have a chip manufacturing plant, it can make more money than simply authorizing Apple to produce chips by finding other factories to produce chips with OEMs and then selling them to Apple! ! !
"Mr. Reid, ARM can help Apple design chips, but," George Multon paused, said, "ARM does not authorize Apple to produce it itself. If Apple needs chips, it must buy them from ARM. !!! We can guarantee that in the supply of chips, we can definitely meet Apple's needs first!"
Ronald Reid hummed twice and sneered: "As far as I know, ARM does not seem to have a chip manufacturing plant..."
George Moore looked complacent, smiled, and said, "Hehe, Mr. Ronald Reid, as far as I know, Apple doesn't seem to have a chip factory!" After that, he looked at Luo with a joking look. Nader Reid. George Moore refused to give up and confronted Ronald Reid tit-for-tat. The teasing in his words was very strong. Your Apple company is like fifty steps and a hundred steps of laughter. You said that our ARM company does not have a chip manufacturing plant. , Then does Apple have it?
"Hehe," Ronald Reid had a thick skin and didn't blush at all. He laughed dryly and said, "Let's not talk about this for now. Apple has already come up with two plans. You can take a look first!"
Speaking, someone from the Apple team took out some documents and handed them to the negotiation team on ARM's side.
A few minutes later, when George Moore and the others almost finished browsing, Ronald Reid said: "The first set of solutions, which we just said, ARM company designs chips for Apple, and authorizes them to produce them themselves. , The design fee and licensing fee totaled two million U.S. dollars. The second set of plans, that is, Apple purchases chips from ARM, and the price of each chip is one hundred U.S. dollars!"
George Moore frowned deeply. The two plans given by Apple were actually only one set, forcing ARM to choose the first set of plans. In the second set of solutions, the price of each chip is only one hundred dollars. If ARM produces it, the cost will be as high as ninety dollars. Each chip will only make ten dollars. If you sell 200,000 chips, you can earn two million. Dollars!
Do you expect Newton to sell 200,000 units? ! !
"Mr. Reid~www.readwn.com~ Is the price of $100 per chip too little? Intel's chips are all three to four hundred dollars each!"
"Oh, the price of Intel's chips is like this, that's right. But, is your ARM company Intel? Isn't it because your ARM chips are cheap, or why don't we go to Intel to design chips?" Luo Nader Reid said indifferently.
George Moore flushed with a feeling of being despised. However, what Ronald Reid said is true, and it is difficult for George Moore to argue! George Moore swallowed, took a breath, calmed his emotions, and then slowly said: "In terms of performance, ARM chips are indeed inferior to Intel chips, but in some aspects, ARM chips are better than Intel chips, especially ARM. The chip has low power consumption, which is just in line with your Newton product needs!!!"
George Moore did not go on to say it thoroughly, but the meaning is obvious. ARM chips are more suitable for Newton than Intel chips. If you don't raise the price for me, then you can just use Intel chips! ! ! The price is too expensive, and the power consumption consumes you! ! !
Ronald Reid was silent for a while, and after thinking about it for a while, he said, "Let's do it, an ARM chip is $105!"
George Moore shook his head and felt a little disappointed. Apple looked down on people too much, and only raised $5...
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