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Bombshell of the year: Apple to buy ARM?

If true, this rumor would blow away pre-released iPhones or anything else this year by a long shot.  The Evening Standard is reporting that Apple is in talks to buy the Cambridge UK based processor designer, ARM  for $8 billion. That is less than one fifth of Apple’s cash and short term holdings of over $40 Billion.

ARM’s stock price was up 8.1 points on the news.  Apple uses ARM chips in iPods, iPhones and its new A4 chips inside its iPad.

Apple buying ARM would profoundly change the technology industry as a whole.  Just about every single mobile device smaller than a Netbook uses ARM chips.  That includes Nokias, Blackberries, Microsoft phones, Android phones from Motorola and HTC a lot of routers, hard drives, cars, Sony PSPs NintendoDS…and that is the begining.  There is an ARM chip for every human being on earth, many times more than Intel’s footprint.

The deal would also have to clear government regulatory approval in the US and abroad, which might be tricky.

ARM was originally founded in November 1990 as Advanced RISC Machines Ltd and structured as a joint venture between Acorn Computers, Apple Computer and VLSI Technology. So this would be a homecoming of sorts. via Macrumors.

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