We wrote about 6 weeks ago on rumours of Apple sniffing around ARM, the designer of the cores that run all the phones we are using, be it Windows Mobile, Android or even iPhone.
Now the rumours have started anew, leading to a massive bump of up to 32% in ARMâ€™s share price.
That still makes the ARM worth only about $ 5 billion, chump change for the $220 billion consumer electronics company.
Analysts have complained the deal makes no sense, saying ARM being owned by a major smartphone player would just alienate all the other companies using the chips.
Rumours that ARM Holdings may be acquired by Apple are â€œtotally unfounded,â€ D.A. Davidson analyst Aalok Shah asserted in a research note. He downgraded his rating on the stock to Underperform from Neutral after a run-up tied to the rumour.
Having first swing at the latest chip advances will however give Apple an edge they have been sorely missing in recent years, with the famously vertically integrated company being forced to use the same ARM chip cores as everyone else and being leapfrogged in the gigahertz race by Qualcomm for example.
Is Apple evil enough to attempt an end run on all the other smartphone companies? Let us know your opinion below.
More at Barrons here.