Android phones, iPhones could become very expensive because of a decision that came as a very hard blow for some of the manufacturers around the world, and the situation is not good for any of the customers. ARM, the company that developed the technologies used for the processors in mobile phones sold worldwide, is starting to impose an increase in prices for licensing the technologies used in these processors right from 2020.
ARM has already contacted some manufacturers of processors for Android and iPhone phones with the idea of announcing to them that it wants to increase by no less than 4 times the licensing prices for the technologies used in the processors, a colossal increase. The measure comes after Softbank, the company that owns ARM, wants to sell it because, probably, it is not generating the profit it expected, but in the meantime it is trying to increase it through moves that could have extremely important effects.
Android phones, iPhones could get VERY EXPENSIVE
ARM is an essential technology for the processors used by the phones of some of the largest mobile phone manufacturers such as Apple, Samsung, Huawei, Xiaomi, OPPO, Vivo, and more. They all use ARM technologies in their processors because there is nothing better at the moment, but that could change if the licensing prices for the British company's technologies will increase to much too high values.
“In recent discussions, Arm sales representatives have pushed for price increases that would quadruple overall license costs for some customers. Arm supplies the intellectual property in the chips that power most of the world's smartphones, including those from Apple and Samsung. It is expanding into automotive chips and network technology, among other markets.”
Android phones, iPhones could become more expensive by tens, or maybe even hundreds of dollars, or euros, if these license price increases will be imposed by ARM, in the end, so we can expect such a bad evolution. No manufacturer wants to see such increases in the prices of the processors they use in their phones, but things don't always go exactly as they imagine.
Unfortunately for all of us, ARM's desire to make a profit could seriously affect us in the long term, but everything also depends on possible rumors regarding an acquisition of the company by Apple.
