has a report on Arm's "radical shake-up" of its business model. The new plan is to raise prices across the board and charge "several times more" than it currently does for chip licenses. According to the report, Arm wants to stop charging chip vendors to make Arm chips, and instead wants to charge device makers—especially smartphone manufacturers—a fee based on the overall price of the final product.
Let's say Motorola makes a phone with a Qualcomm Snapdragon Arm chip. Previously, Qualcomm would have signed a deal with Arm for an Arm license, and that license would extend to anyone that buys a Qualcomm Arm chip, like Motorola. Qualcomm contributes a lot to its own chip designs, but when it comes to the Arm license it is basically an Arm reseller. Arm would now want a licensing fee from
Motorola (and not Qualcomm?), and it would ask Qualcomm to not sell chips to anyone that doesn't have a licensing agreement with Arm.
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Right now, Arm is talking this over with partners and the plan is to roll out the pricing changes in 2024, but we presume in-place contracts will keep some companies on the old model for a few more years. The report says, "MediaTek, Unisoc and Qualcomm, and multiple Chinese smartphone makers including Xiaomi and Oppo, are among the companies that have been made aware of the proposed change to pricing policy," later adding that Arm has been "frustrated by customers’ reluctance to accept the new arrangement."