| LONDON — Processor intellectual property licensor ARM Holdings plc averaged royalties of $0.102 per handset sold in 2006 that it was present in, according to a presentation due to be given to financial analysts and investors Wednesday (May 23) by chief executive officer Warren East.
The presentation shows that although the royalty rate ARM (Cambridge, England) can levy has risen by 68 percent since 2002, when it was 6.1 cents, with the present pattern of slowing growth the royalty is unlikely to reach 11 cents, despite a tendency for ARM to have multiple cores in each handset.
ARM's 2006 performance means it took less than one tenth of one percent of the value each handset sold in 2006 that it was present in. However, this percentage benchmark is set to improve as the average cost of handsets appears set to fall again in 2007 as ARM's per-handset royalties edge upwards.
ARM has a penetration of around 80 percent to 90 percent in the mobile phone handset market. To judge from the presentation slides, the theme of ARM's meeting was increasing ARM value in established and new applications. The slides could be found here when this story was first posted.
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