Report: Apple Pays Less Than 30 Cents in Royalties to Arm Per Chip - GeekWebGuides
Skip to Content

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

Apple vs DOJ Feature

Developers Question Scope of Potential Apple Antitrust Settlement

Friday October 16, 2026 6:41 am PDT by
Developers are questioning whether a settlement of the U.S. government's antitrust case against Apple would meaningfully loosen the company's control over the iPhone, according to The Information. The report highlights PayPal and Epic Games among the companies that have raised concerns with the Department of Justice (DOJ). Officials have reportedly indicated that they favor a negotiated...
skyrim

Skyrim Comes to Apple Silicon Macs With New Unofficial Installer

Tuesday October 20, 2026 7:56 pm PDT by
Bethesda's beloved role-playing game "The Elder Scrolls V: Skyrim" has reached multiple generations of consoles since its 2011 debut, but it never officially came to the Mac. A new unofficial project called SkyrimMT now aims to make playing and modding it on Apple silicon Macs easier than ever. Mac owners have found ways to play Skyrim over the years, including installing Windows through...
iPhone Duo Trio

Here's What Apple's Apps Look Like on the iPhone Duo

Tuesday October 20, 2026 11:12 am PDT by
With just three days to go until the iPhone Duo is released, Apple is getting ready for the launch. Behind the scenes, the App Store now has screenshots of Apple's built-in apps running on the Duo. We've seen some apps in marketing materials, but images of the ones we haven't seen give us an idea of what it will be like using the iPhone Duo day to day. Many apps are shown in landscape...

Top Rated Comments

Spaceboi Scaphandre Avatar
38 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)
38 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
38 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)
38 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)
38 months ago
Softbank is just butthurt they've lost so much money on other terrible investments, like WeWork.
Score: 30 Votes (Like | Disagree)
GeoStructural Avatar
38 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)
Latest Stories
iPhone Duo Launch Begins as First Orders Reach Customers
iPhone Duo Launch Begins as First Orders Reach Customers
4 hours ago
1Password for Agents Keeps Your Passwords Hidden From AI
1Password for Agents Keeps Your Passwords Hidden From AI
5 hours ago
iPhone Duo 24 Hours Later: Your Questions Answered
iPhone Duo 24 Hours Later: Your Questions Answered
5 hours ago
Apple's iWork Apps Get 'Intelligent Assistant' and iPhone Duo Support
Apple's iWork Apps Get 'Intelligent Assistant' and iPhone Duo Support
6 hours ago
Apple is Apparently Considering a Slightly Larger iPhone Duo
Apple is Apparently Considering a Slightly Larger iPhone Duo
6 hours ago
Giant iPhone Duo Displays Coming to Four Apple Stores
Giant iPhone Duo Displays Coming to Four Apple Stores
7 hours ago
Apple Pulls Keynote, Pages and Numbers From App Store [Update: Back]
Apple Pulls Keynote, Pages and Numbers From App Store [Update: Back]
8 hours ago
Apple Updates More Apps With iPhone Duo Support
Apple Updates More Apps With iPhone Duo Support
9 hours ago
Apple Will Label Apps 'Made for iPhone Duo' in App Store
Apple Will Label Apps 'Made for iPhone Duo' in App Store
12 hours ago
Amazon Takes $49 Off iPad With Prices Starting at $399.99
Amazon Takes $49 Off iPad With Prices Starting at $399.99
12 hours ago
F1 on Apple TV Now Available in Dolby Atmos
F1 on Apple TV Now Available in Dolby Atmos
13 hours ago
Apple Reveals More Than 50 Apps That Will Be Updated for iPhone Duo
Apple Reveals More Than 50 Apps That Will Be Updated for iPhone Duo
13 hours ago
Apple Blocks Certificates That Could Help Attackers Fake Websites
Apple Blocks Certificates That Could Help Attackers Fake Websites
15 hours ago
Giant iPhone Duo Installations Spotted at Apple Fifth Avenue
Giant iPhone Duo Installations Spotted at Apple Fifth Avenue
15 hours ago
iPhone Duo 2 Prototypes Include Under-Display Face ID
iPhone Duo 2 Prototypes Include Under-Display Face ID
15 hours ago
Tesla App Gains iPad and iPhone Duo Support
Tesla App Gains iPad and iPhone Duo Support
19 hours ago
Apple Reportedly Boosts iPhone Duo Orders by 44%
Apple Reportedly Boosts iPhone Duo Orders by 44%
20 hours ago
Fortnite Returning to Australian App Store After Court Ruling
Fortnite Returning to Australian App Store After Court Ruling
20 hours ago
Apple Ordered to Open iPhone to Rival App Stores in Australia
Apple Ordered to Open iPhone to Rival App Stores in Australia
21 hours ago
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
21 hours ago
Things Updated for iPhone Duo With Adaptive Layout
Things Updated for iPhone Duo With Adaptive Layout
21 hours ago
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
22 hours ago
iPhone Duo Reviewers Really Miss Face ID
iPhone Duo Reviewers Really Miss Face ID
1 day ago
Does the iPhone Duo Run Hot? Here's What Reviews Found
Does the iPhone Duo Run Hot? Here's What Reviews Found
1 day ago
Apple Music's New Look is Now Live on Apple's Website
Apple Music's New Look is Now Live on Apple's Website
1 day ago
Anthropic Launches Claude Duet, a Proactive AI Agent
Anthropic Launches Claude Duet, a Proactive AI Agent
1 day ago
What 32,000 Folds Did to the iPhone Duo's Hinge
What 32,000 Folds Did to the iPhone Duo's Hinge
1 day ago
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
1 day ago
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
1 day ago
Apple Support App Updated for iPhone Duo's Larger Display
Apple Support App Updated for iPhone Duo's Larger Display
1 day ago