Apple signs long-term deal with IPO-bound chipmaker Arm
Apple has inked a new long-term agreement with Arm, extending beyond 2040, for the production of its own processors used in iPhones, iPads, and Macs.
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Arm confirmed the deal in its initial public offering (IPO) documents filed with the US Securities and Exchange Commission.
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The filing also revealed that Apple was among the 10 cornerstone investors who have shown interest in buying around $735 million of Arm shares.
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The SoftBank-backed chipmaker is aiming for an IPO of around $54.5 billion.
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Arm was set up in 1990 as a joint venture between Acorn Computers, Apple, and VLSI Technology.
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Apple had joined hands with Arm for the release of its 'Newton' handheld computer in 1993. However, the device failed to take off.
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Arm later became one of the main players in mobile phone processors because of its low power consumption, which aids smartphone batteries to last longer.
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Apple has been utilizing Arm technology for its chipsets for many years.
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Apple is not the only one to show interest in purchasing roughly $735 million worth of Arm shares.
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To note, Arm is offering 95.5 million American depository shares at a valuation of $47 to $51 each.