Report: Apple Pays Less Than 30 Cents in Royalties to Arm Per Chip

Apple pays British chip architect Arm less than 30 cents per chip in royalties, The Information reports.

arm logo blue bg
Apple licenses the underlying technology used in the iPhone, iPad, Mac, Apple Watch, Apple TV, and HomePod from Arm. Despite being one of its biggest and most important customers, Apple represents less than five percent of Arm's annual revenue, with the company paying the least of any of Arm's smartphone chip customers. Apple pays a flat fee of less than 30 cents in royalties for each chip used in its devices, regardless of how many cores it has.

SoftBank is the owner of Arm, and in 2017, the company's CEO gathered Arm executives and explained that Apple pays more for the piece of plastic that used to be used to protect the screens of new iPhones than it does to license Arm's intellectual property. SoftBank's attempts to renegotiate Arm's deal with Apple to raise royalty rates were apparently unsuccessful.

While Apple is unlikely to sever its ties with Arm, the company has apparently explored the long-term possibility of using a competing open-source technology for its chips called RISC-V. Apple's current licensing agreement with Arm was signed in September and it "extends beyond 2040," but the chip architect is said to have continually attempted to renegotiate its financial terms.

Popular Stories

AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iphone 16 pro models 1

17 Reasons to Wait for the iPhone 17

Thursday April 17, 2025 4:12 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we often get rumored features months ahead of launch. The iPhone 17 series is no different, and we already have a good idea of what to expect from Apple's 2025 smartphone lineup. If you skipped the iPhone...
Beyond iPhone 13 Better Triad

Apple's 20th Anniversary iPhone May Finally Go All Screen

Tuesday April 15, 2025 6:31 am PDT by
Apple is preparing a "bold" new iPhone Pro model for the iPhone's 20th anniversary in 2027, according to Bloomberg's Mark Gurman. As part of what's being described as a "major shake-up," Apple is said to be developing a design that makes more extensive use of glass – and this could point directly to the display itself. Here's the case for Apple releasing a truly all-screen iPhone with no...
maxresdefault

iPhone 17 Pro Launching Later This Year With These 12 New Features

Sunday April 13, 2025 7:52 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Subscribe to the MacRumors YouTube channel for more videos. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and ...
CarPlay Hero

Apple Releases Wireless CarPlay Fix

Wednesday April 16, 2025 11:28 am PDT by
If you have been experiencing issues with wireless CarPlay in your vehicle lately, it was likely due to a software bug that has now been fixed. Apple released iOS 18.4.1 today, and the update's release notes say it "addresses a rare issue that prevents wireless CarPlay connection in certain vehicles." If wireless CarPlay was acting up for you, updating your iPhone to iOS 18.4.1 should...
top stories 2025 04 19

Top Stories: iPhone 17 Pro Rumors, CarPlay Bug Fix, and More

Saturday April 19, 2025 6:00 am PDT by
This week saw rumor updates on the iPhone 17 Pro and next-generation Vision Pro, while a minor iOS 18.4.1 update delivered not just security fixes but also a fix for some CarPlay issues. We also looked ahead at what else is in Apple's pipeline for the rest of 2025 and even the 20th-anniversary iPhone coming in 2027, so read on below for all the details on these stories and more! iPhone 17 ...
iOS 18

iOS 18.5 Includes Only a Few Changes So Far

Monday April 21, 2025 11:00 am PDT by
Apple seeded the third beta of iOS 18.5 to developers today, and so far the software update includes only a few minor changes. The changes are in the Mail and Settings apps. In the Mail app, you can now easily turn off contact photos directly within the app, by tapping on the circle with three dots in the top-right corner. In the Settings app, AppleCare+ coverage information is more...

Top Rated Comments

Spaceboi Scaphandre Avatar
18 months ago
I mean is this even a surprise? Apple was one of the founding supporters of Arm so they're grandfathered in.
Score: 53 Votes (Like | Disagree)
till Avatar
18 months ago
It's a sweet deal for ARM, tens of millions of dollars every year just for providing an instruction set. Apple still does all the actual chip design themselves.
Score: 43 Votes (Like | Disagree)
snak-atak Avatar
18 months ago
Apple took a risk and invested heavily in the future of ARM years ago. Now it’s paying off, not just for Apple, but for ARM as well.
Score: 35 Votes (Like | Disagree)
iBluetooth Avatar
18 months ago
Note, that Apple is not using the ARM chip designs, only their ISA and develops its own chip designs. Thus, 30 cent per chip is reasonable for only the ISA.
Missing from the report is that ARM was established by Apple, Acorn Computers and smaller firm, so that Apple could license their ISA. Apple is a founder, but sold it's stake when it was almost bankrupt. Thus, Apple has a good deal with ARM, as it should.
Score: 34 Votes (Like | Disagree)
GeoStructural Avatar
18 months ago

Not surprising considering the long-lasting relationship Apple has with Arm to be honest - it was certainly beneficial to both parties in the past.
As far as I remember Apple was one of the founders of Arm, and recently the new push for it in commercial computers can be attributed to Apple as well, before these chips were used in low power devices, I see no problem with Apple reaping the benefits now.
Score: 30 Votes (Like | Disagree)
reden Avatar
18 months ago
Softbank is just butthurt they've lost so much money on other terrible investments, like WeWork.
Score: 30 Votes (Like | Disagree)