Chip designer ARM Holdings posts a 32 percent rise in second-quarter profit, reflecting a jump in royalties from devices like Apple's iPhone 6. But as Grace Pascoe reports shares fell after Apple's results disappointed investors.
Apple's influence is hard to over-estimate. When it catches a cold many others sneeze - even when your profits are up by almost a third. That's the situation at British chip maker ARM Holdings. It's technology is used in the vast majority of smartphones and tablets and Apple is its biggest client. Royalties helped ARM achieve second quarter profits of almost 124 million pounds - a rise of 32 percent But its shares fell four percent - after Apple's dropped seven. It's all about wrong forecasts not long term prospects, says Robert Haigh from Brand Finance. (SOUNDBITE) (ENGLISH) BRAND FINANCE, COMMUNICATIONS DIRECTOR, ROBERT HAIGH, SAYING: "Apple has an incredibly powerful brand that arguably it even exerts quite a pull on generally level-headed analysts and investors. So it might just be sort of a minor correction from the exuberance that people tend to pile in with when they are looking at Apple as an investment opportunity." There's not much wrong at ARM either. It's shipped over 60 billion chips since it was founded in 1990. And is set to meet its full-year revenue target of almost one and a half billion dollars.