As expected, Apple’s chip design partner Arm is moving toward an IPO. It is interesting the extent to which the risks Arm describes in its IPO prospectus echo those currently faced by Apple and most leading tech companies. That’s why everyone in tech will pay attention to this offering.
Too big to grow?
As with all the world’s biggest tech firms, Arm’s IPO prospectus describes a company that is a victim of its own success. Think about it…
With about 99% of the world’s smartphones using its reference designs to a greater or lesser extent, the company can’t maintain growth in the mobile market alone. That’s not dissimilar to the challenge most others face, though Apple is currently scooping up mobile industry market share as the overall size of that industry declines.