Chapter 101: ARM and Apple
"Oh, by the way, we have to get a partnership with Apple!! "Henry smiled meaningfully as he left, and explained to George Moore.
In fact, there is no need for Henry to remind that ARM will also strive for cooperation with Apple. In the current environment, few companies will use ARM chips, but Apple wants to launch a handheld computer Newton, which just needs chips with low cost and low power consumption. On the market, only ARM's chips meet Apple's requirements. As a result, the two sides have the basic conditions for cooperation!
George Moore nodded and said, "Don't worry, Mr. Williams, I will definitely take down Apple as a user !!"
"That's good!" Henry replied, and walked through 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 it can achieve the same effect without investment, Apple will not spend this unjust money to invest in ARM. At this stage, ARM is obviously not profitable, 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 will never invest in ARM unless it is forced to do so!
In fact, Apple does not attach great importance to ARM, in the previous life, Apple did not do Newton, so it sold ARM shares cleanly!
Apple is like something, after the end, put on the pants and left!! who expected, a few years later, the ARM ugly duckling turned into a white swan, Apple's eyes were red, crying and shouting, please give me another chance! Well, after spending a lot of money, Apple has the right to "take off its pants" again!!
After Henry left, George Moore negotiated with the people at Apple.
"Mr. George Moore, we at Apple want ARM to design a chip specifically for Newton and license Apple to make the !!," Ronald Reed, the leader of Apple's negotiating team, said aggressively. This time, Apple has a large negotiation team, including technical personnel, business personnel, legal personnel, financial personnel, main negotiation leaders, and record personnel, a total of 13 people, more than the number of ARM's R&D team! ARM's negotiation team is only six people, less than half of Apple's.
Since Apple doesn't invest in ARM, it can't get a good price from the inside. Therefore, Apple has shown a very strong position in the negotiation process, so that it can win more benefits for its side!! and send so many people over, first of all, it will be able to overpower ARM in terms of momentum! Ronald Reed, the leader of the negotiation team, has a commanding tone as soon as he speaks, and he is very strong!
ARM has just been established, little-known, in 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 designing chips for Apple, but authorizing Apple to produce it itself is equivalent to ARM giving up a large part of its interests. Although ARM does not have a chip production plant, it can make much more money to find other factories to produce chips on an OEM basis and then sell them to Apple than simply authorizing Apple to produce its own chips!!
"Mr. Reed, ARM can help Apple design chips, but," George Dusk paused, "ARM will not authorize Apple to produce its own, if Apple needs chips, it must be purchased from ARM!! we can guarantee that in terms of chip supply, we can definitely give priority to meeting Apple's needs!"
Ronald Reid snorted twice and sneered: "As far as I know, ARM doesn't seem to have a chip production plant......
George Moore looked calm, smiled, and said, "Hehe, Mr. Ronald Reed, as far as I know, Apple doesn't seem to have a chip production plant!" After speaking, he looked at Ronald Reed with a mocking expression. George Moore did not give an inch, and went toe-to-toe with Ronald Reed, the ridicule in his words was very strong, your Apple company is simply fifty steps and a hundred steps, you say that our ARM company does not have a chip production plant, then your Apple company has it?
"Hehe," Ronald Reed was thick-skinned and didn't blush at all, laughed dryly twice, and said, "Let's not talk about this for now, our Apple has already come up with two sets of plans, you can take a look at them first!"
As he spoke, someone from the Apple team took out a few documents and handed them to the negotiation team on ARM's side.
A few minutes later, George Moore and the others were almost done browsing, and Ronald Reid said: "The first plan, which we just said, is that ARM designs chips for Apple and licenses them to Apple to produce them themselves, and the design fee and licensing fees are two million dollars in total. The second option, in which Apple buys chips from ARM, costs $100 per chip!"
George Moore frowned deeply, the two sets of solutions given by Apple were actually only equivalent to one, forcing ARM to choose the first set. In the second set of plans, after the price of each chip, the cost is as high as $10, and if ARM produces it, the cost is as high as $10, and each chip only earns $10, and it takes $2 million to sell 200,000 chips!
Is it expected that Newton can sell 200,000 units?!!
"Mr. Reed, isn't $100 per chip too little? Intel's chips are all $3 or 400 a piece!"
"Oh, Intel's chip price is like this, that's right. But is your ARM company Intel? Isn't it because your ARM chips are cheap, otherwise why don't we look for Intel and ask you to design the chips?" Ronald Reed said nonchalantly.
George Moore's face flushed, and he felt looked down upon. However, what Ronald Reed said is true, and it is difficult for George Moore to defend himself! George Moore swallowed his breath, took a breath, calmed down his emotions, and then said slowly: "In terms of performance, although the ARM chip is indeed inferior to the Intel chip, in some aspects, the ARM chip is stronger than the Intel chip, especially the low power consumption of the ARM chip, which just meets the needs of your Newton products!!
George Moore didn't continue to say it thoroughly, but the meaning of the words was already obvious, ARM chips are more suitable for Newton than Intel chips, if you don't give me a price increase, then you can simply use Intel chips!! the price is expensive for you, and the power consumption consumes you!!
Ronald Reed was silent for a moment, and after thinking for a while, he said, "That's it, $105 for an ARM chip!"
George Moore shook his head, feeling a little disappointed, Apple looked down on people too much, and only gave a $5 increase......
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