London - A pricey new smartphone was a reason to dislike Apple, so it was left to microchip designers to get everyone excited. Apple's new smartphones all use 64-bit microchips, which is rather good news for Cambridge-based Arm Holdings.
Arm's 64-bit chips may mean higher royalty fees from Apple, and the popularity and success may lead to other devices also using these clever chips that make phones quicker and use up less battery.
Liberum Capital's experts said that Apple's use of the chip will “help compensate” Arm in the face of a move to cheaper phones that would have “put pressure on Arm's average royalty per chip”.
Arm took the top spot on the blue-chip index and some traders even speculated that Arm could again become a bid target.
Mobile graphics microchip maker Imagination Technologies is also expected to benefit from Apple's new iPhone 5S. - The Independent