Microsoft is turning its back on two of its current chip partners by limiting support in the next version of its Pocket PC operating system to just one supplier - UK-based ARM Holdings.
Pocket PCs running on the current generation of the operating system support processors from three different manufacturers - MIPS, SuperH and ARM.
However, the next generation of Microsoft's Pocket PC operating system - code-named Merlin - will only support processors produced by ARM Holdings.
Sources suggest that the next OS will see Microsoft abandon the multi-processor model in favour of a single processor support.
This decision is likely to reduce the amount of processor and memory resources consumed by the operating system, the so-called "footprint".
Microsoft has already been criticised for having too large a footprint on its mobile devices, and the Pocket PC has a much shorter battery life than many alternative devices, such as those made by Palm.
It will also simplify application development and OS upgrades.
Many Pocket PCs already use ARM processors, including the most popular range, the Compaq iPaq.
MIPS processors appear in Casio's Cassiopeia, as well as handheld devices from Philips, Samsung, Sharp and some other Compaq models such as the Aero.
Cores from SuperH, a joint venture between STMicroelectronics and Hitachi, are used in Hitachi products and the HP Jornada.
The news will come as a blow to MIPS and SuperH, but will not spell the end of their involvement in the market as both products are used in a range of other embedded applications.
Besides, Microsoft does not dominate the Pocket PC market in the same way as it dominates the desktop - Palm still has a larger share of the US market.
Microsoft declined to comment on the news.
Another bit of good news... makes me wonder what the share price would be if we were in a true bull market.
Up +4.5 to 281.5...once again disappointing shorters taking positions with great appetite early morning...
I got in after it bounced from 270 at 274...
LONDON (AFX) - Shares in ARM Holding PLC were slightly higher in mid-morning trade after Merrill Lynch issued a positive note on the chip designer in which it predicted the group will post strong results for the rest of the year, dealers said.
The US-owned broker said a presentation from ARM chief executive Robin Saxby leaves it convinced the company will post third and fourth quarter will meet or beat the company's 40 pct revenue growth target.
While it anticipates weak wireless and networking revenues, this will likely be balanced out by robust storage, imaging, consumer, and automotive sales, said Merrill, which repeated its "buy" rating and 400 pence price target.
Looking beyond the current year, the broker said software and platforms will be the key to future revenue growth.
"The software market is important because helping customers integrate hardware and software is a very high value-add process and ARM can generate multiple royalties (semiconductor and software) from the same end product," said Merrill.
There was a lot of interest in ARM's new package of fast-time-to-market wireless platforms at a recent industry conference in Cambridge, added Merrill.
ARM looks to be the best value tech to sell short, suspect sub 225p by Wednesday. Agree that ARM is sentiment driven, the sentiment this week will be the most negative we have seen so far this year. In my opinion we shall crash through previous year lows on FTSE and Nasdaq.
Now wouldnt it be nice to catch ARM at 225 and pile in big time, but I very much doubt that, as I've seen ARM disappointing shorters day in day out...Nothing has changed with ARM ever since it started its journey from 200 to well over 300 on upbeat results...Friday's performance is another example to ARM's strength...It's easy to predict the worst for any share in such market sentiments, but the point should be to find the most vulnerable ones to short and quality ones to long making use of the general downtrend...
As most will remember, I am a big fan of ARM - well respected management, and always seem to post excellent results.
Arm confounded me today - whilst I did not feel it would fall as rapidly as Y2K suggested, I certainly felt sentiment would end any upside for now.
buys - 4.438M.
sells - 7.305M.
After hours - sell 139K
During hours - 1.5M at approx 3.pm (297p).
there were also several other substantial sells of >100 000 during the day.
In my mind, there are a few scenarios:
1. That the rise was genuine, and the sellers are mugs who will be disappointed when ARM rises after a Fed cut.
2. that the accumulation phase has ended, and distribution is occurring witnessed by the fact that many of the buys were small.
3. that the share was hyped by the MM's to fulfil the sale orders - my favoured explanation. The large sell order is filled, and now the downside might start - esp if the Fed hint at any negativity. By the way, Level 2 showed some placement and removal of several 100 000 orders during the day that I never saw filled - again possibly hyping the buy to sell ratio.
Or maybe I am getting cynical. I hope that is all it is, because if anything nasty does happen, the falls might be precipitous.
Good points Mark.
My feeling is that the MMs have been short circa 5 mil shares this last week and todays trading may have redressed this somewhat and at an appropriate price for them.
Unless there is a very large buy order, yet to be disclosed, this may answer.
I am happier not holding the position overnight even if i've got it wrong.
Obviously the scenario i now want is what you describe in your last paragraph, and i hope the cliff is very steep.
After the overwhelming response to the Fed cut today, I suspect that both your and my wish will soon happen. Things must be very sick for this reponse - people just were not interested. The end of a sucker rally - we will see. I firmly believe ARM is an excellent company, but I would be shocked if I cannot buy it dramatically cheaper in a few days than at its current price.
Hopeing all are prepared for a potential bumpy ride tomorrow,