Apple (AAPL) Advantage In Upcoming ARM IPO
As we are coming to the end of August 2023, one of the important event I am looking out is the ARM IPO. There have been many news reported about the major chip makers or consumer electronic manufacturer interest to invest in this latest “Hot” IPO.
One of Arm's major customers in talks to invest in the IPO is $Apple(AAPL)$.
There is something that we need to look at which is the relationship of Apple being part of a consortium that founded Arm in 1990. Apple has been using ARM technology for chips that power its iPhones and Mac computers.
Apple close relationship with Arm has helped it design chips that curbed its reliance on Intel as a supplier.
Apple spokespeople did not respond to a request for comment.
In this article, I would like to look at the partnership between ARM (Advanced RISC Machines) and Apple Inc. Because this partnership has reshaped the technology landscape and also help to play a pivotal role in shaping modern computing devices.
This is how we have been getting electronic devices since 1990s to evolve to become smaller and more powerful and efficient.
How The Collaboration Began
Starting in the 1990s, this relationship has evolved into a dynamic and influential collaboration that has left an indelible mark on the industry. From the early days of the PowerPC architecture to the present dominance of ARM-based Apple Silicon,.
The roots of the ARM and Apple partnership can be traced back to the early 1990s when Apple was looking for alternatives to the Motorola 68k series of processors that powered its Macintosh computers.
This quest for better performance and power efficiency led Apple to collaborate with IBM and Motorola to develop the PowerPC architecture.
This collaboration birthed a new era for Apple's computing devices and laid the foundation for the ARM relationship to come.
ARM's Role in Apple's Mobile Revolution
The first major turning point in the ARM and Apple relationship came with the rise of mobile computing. As mobile devices became more prevalent, Apple sought to design a processor architecture that would optimize power efficiency without sacrificing performance.
Enter ARM's RISC (Reduced Instruction Set Computer) architecture, which was renowned for its energy efficiency.
In 2007, Apple launched the iPhone, a game-changing device that marked the beginning of the mobile revolution. The iPhone's success was fueled by the ARM-based processor that powered it. Apple's decision to use ARM architecture not only contributed to the iPhone's extended battery life but also enabled the creation of a rich ecosystem of apps and services that defined modern mobile computing.
The Shift to Custom ARM Architecture
While ARM processors powered Apple's mobile devices, the company continued to use Intel processors for its Mac lineup.
However, in 2020, Apple made a monumental announcement that sent shockwaves through the industry: the company was transitioning its Mac computers from Intel processors to custom-designed ARM-based processors, collectively known as Apple Silicon.
This move marked a new phase in the ARM and Apple relationship. Apple's decision to develop its ARM-based processors was rooted in its desire for more control over the design, performance, and power efficiency of its devices. The M1 chip, the first iteration of Apple Silicon, showcased remarkable performance gains and energy efficiency, setting a new standard for personal computing devices.
Implications and Future Prospects
The evolution of the ARM and Apple relationship has had far-reaching implications for the technology landscape. Apple's shift to custom ARM architecture has led to tighter integration between hardware and software, enabling the company to deliver devices with unmatched performance and efficiency.
Furthermore, the move to Apple Silicon also underscored the potential of ARM-based processors in traditional computing devices beyond mobile platforms. This has spurred other manufacturers to explore ARM-based solutions for laptops and desktops, marking a broader industry trend.
Looking ahead, the ARM and Apple relationship is poised to continue shaping the future of computing. As Apple refines its custom processor lineup and leverages its expertise in software and hardware integration, we can anticipate further innovations in performance, power efficiency, and device capabilities.
ARM Future Prospects With Other Manufacturers
With the success of Apple in using the custom ARM processor, I would not be surprised to see more and more OEM manufacturers starting to explore ARM-based solutions for their laptops and desktops.
That could even more into enterprise devices like servers and small monitoring devices. This is a great potential for both ARM and Apple.
I am looking forward to Apple share price surging as ARM share price surge.
Before that, I would look at how Apple have been doing recently for them to take advantage of this opportunity.
Technical Analysis - Average Directional Index (ADX)
As we can see from ADX, the value is between 20 and 40 indicating a developing trend. +DI is above -DI which suggest a bullish upside momentum.
I would foresee that Apple would be gathering more upside in the upcoming trading.
I will paid more attention to September trading as ARM IPO gets nearer.
Summary
From the early days of the PowerPC architecture to the present era of custom-designed Apple Silicon, the relationship between ARM and Apple has traversed decades and transformed the technology landscape.
The partnership's evolution has not only revolutionized mobile computing but has also set the stage for the next generation of personal computing devices.
As ARM-based processors continue to redefine the boundaries of performance and efficiency, the ongoing collaboration between ARM and Apple remains one of the most compelling narratives in the world of technology.
I look forward to Apple having the advantage of ARM IPO and we should see Apple trending towards $190 mark and eventually $200.
Appreciate if you could share your thoughts in the comment section whether you think Apple would have an upside opportunity in September with ARM much anticipated IPO?
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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Apple's investment could help to boost the value of Arm's stock. This could benefit Apple if it decides to sell its stake in Arm in the future.
It gives Apple access to Arm's technology, which is used in a wide range of devices, including smartphones, tablets, and computers.
Apple, as a company, is technology advanced. AAPL, as a stock, is technically great. Just hold it for long term
Apple's investment in Arm is a strategic move that could give the company a number of advantages.
I’m just a dumb 60 yo lineman, but have been buying apple for years and years. This is a buying opportunity! Hedge funds are trying to get it lower before next week. This happens every year. Don’t listen to these trolls here.
The irrationality of selling is over now— this is an opportunity to buy more. As any Apple holders have said- buy Apple because you want to hold it and make a lot of money.
AAPL better get smart and come up with a foldable or Samsung and others will clean their clock. Cant see why AAPL has fallen so far behind in foldables.
Long knows . It’s pre split all over again, when appl stuck under 100 after pulling back from 130 for months.
All this rumor craze and Apple has not said a fn word while China Mobile was forced to deny this nonsense.
The lowest it can go to is 160 before shooting up with revenge!