Arm buoyed by race to build the internet of things

by Murad Ahmed, European Technology Correspondent - Financial Times, Jul. 22, 2015 – 

Arm Holdings has benefited from the increasing focus on the internet of things, with sales and profits increasing in the first half of 2015 as it looked to diversify from its traditional strength in smartphones.

The Cambridge-based group signed a record 54 processor licences in the second quarter of this year, with its chips set to be used in products ranging from biometric sensors for mobile payments to automotive engine controls.

Arm, one of the UK?s only large global technology companies, sells licences for blueprints for its chips to manufacturers which pay royalties on each unit shipped. Its components are used in more than 95 per cent of smartphones, with the rise of mobile devices powering its growth in recent years.

Simon Segars, chief executive, told the Financial Times it had been a "very good second quarter for us". He added: "We believe that the internet of things is going to be a technology trend that benefits Arm and benefits our licensees in general."

Analysts were optimistic that he was correct.

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