Silicon Valley
Chapter 101 ARM and Apple
Oh, by the way, we must strive for a partnership with Apple!!! Henry smiled deeply and explained to George Moore when he left.
In fact, without Henry's reminder, ARM will also strive to cooperate with Apple. In the current environment, few companies will use ARM chips, but Apple needs chips with low cost and low power consumption to launch the handheld computer Newton. In the market, only ARM's chips meet Apple's requirements. Therefore, the two sides have the basic conditions for cooperation!
George Moore nodded and said: Don't worry, Mr. Williams, I will definitely take down the user of Apple!!!
That's good! Henry responded and walked out of the door.
ARM was acquired by Qualcomm and no longer accepts investment from Apple.
The reason why Apple invests in ARM is just to ensure the supply of Newton chips! If the same effect can be achieved without investment, Apple will not spend this injustice to invest in ARM. At this stage, ARM is obviously not making money. In order to save expenses, it only set up a chip design department, and did not establish its own chip factory, but found other companies to OEM and produce!
Therefore, Apple would never invest in ARM unless it had to!
In fact, Apple does not value ARM very much. In the past life, Apple stopped being Newton and sold ARM shares cleanly!
Apple is like something, after you're done, put on your pants and leave! ! ! Unexpectedly, after a few years, ARM's ugly duckling turned into a white swan, Apple's eyes were red, and she cried and shouted, begging her to give herself another chance! Well, after spending a fortune, Apple has the right to take off the pants again! ! !
After Henry left, George Moore negotiated with the people at Apple.
Mr. George Moore, we at Apple hope that ARM can design a chip specially for Newton and authorize Apple to manufacture it!!! Ronald Reed, the leader of Apple's negotiating team, said strongly. This time, Apple has a lot of negotiating teams, including technical staff, business staff, legal staff, financial staff, key negotiating leaders, and record staff. There are a total of thirteen people, which is more than ARM's R\u0026D team! And ARM's negotiating team is only six people, less than half of Apple's.
Because Apple didn't invest in ARM, it couldn't get a good price internally. Therefore, Apple is very strong in the negotiation process, so as to win more interests for its own side! ! ! Sending so many people over, first of all, you will be able to overwhelm ARM in terms of momentum! The leader of the negotiating team, Ronald Reed, spoke in an imperative tone, showing a very strong performance!
ARM has just been established, unknown and in its infancy, and Apple, as a world-renowned computer company, is already a giant-like existence. Naturally, others have strong capital and confidence!
George Moore frowned slightly. There is no problem in designing chips for Apple, but authorizing Apple to produce it itself means that ARM has given up a large part of its benefits. Although ARM does not have a chip manufacturing plant, finding other factories to OEM chips and then selling them to Apple can make more money than simply authorizing Apple to produce their own chips! ! !
Mr. Reed, ARM can help Apple design chips, but, George Moulton paused, ARM will not authorize Apple to produce its own chips. If Apple needs chips, it must buy chips from ARM. We can guarantee that in the supply of chips, we can absolutely give priority to meeting the needs of Apple!”
Ronald Reed snorted twice and sneered: As far as I know, ARM doesn't seem to have a chip factory...
George Moore looked calm, smiled, and said, Hehe, Mr. Ronald Reed, as far as I know, Apple doesn't seem to have a chip factory! After speaking, he looked at Luo with a playful expression Nader Reed. George Moore did not give in an inch, and confronted Ronald Reed tit for tat. The teasing in his words was very strong. You Apple company is literally laughing at a hundred steps. You said that we, ARM, have no chip manufacturing plant. , then you have Apple?
Haha, Ronald Reed said with a thick skin and no blush at all, he laughed dryly, Let's not talk about this for now, we Apple has come up with two plans, you can take a look first!
Having said that, someone from the Apple team took out some documents and handed them to the negotiating team on the ARM side.
A few minutes later, when George Moore and the others had almost finished browsing, Ronald Reed said: The first solution, as we just said, is that ARM designs chips for Apple and licenses them to Apple to produce them themselves. , the design fee and the licensing fee are a total of two million US dollars. The second set of plans, that is, Apple buys chips from ARM, and the price of each chip is one hundred US dollars!”
George Moore frowned deeply. The two schemes given by Apple are actually only equivalent to one, forcing ARM to choose the first scheme. In the second plan, the price of each chip is only $100. If ARM produces it, the cost is as high as $90, and each chip only earns $10. Only by selling 200,000 chips can you earn two million. Dollar!
Do you expect Newton to sell 200,000 units? ! !
Mr. Reed, isn't the price of $100 per chip too little? Intel's chips are all three or four hundred dollars a piece!
Oh, the price of Intel's chips is like this, that's right. But, is your ARM company Intel? It's not because your ARM chips are cheap, otherwise why don't we find Intel, but you design chips? Luo Nader Reed said indifferently.
George Moore blushed, a feeling of being looked down upon. However, what Ronald Reed said was the truth, and it was hard for George Moore to justify it! George Moore swallowed his breath, took a breath, calmed down 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 stronger than Intel chips, especially ARM chips. The chip has low power consumption, which is exactly in line with your Newton product needs!!!”
George Moore did not continue to explain, but the meaning of the words is already obvious. ARM chips are more suitable for Newton than Intel chips. If you don't give me a price increase, then you simply use Intel chips! ! ! The price is expensive, and the power consumption is killing you! ! !
Ronald Reed was silent for a while, and after thinking for a while, he said, Well, an ARM chip is $105!
George Moore shook his head, feeling a little lost. Apple looked down on people too much, and only gave a $5 increase...
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