Arm Launches New Chip Technology for Smartphone Games

A man takes pictures of iPhones in the new Apple flagship store on its opening day following an outbreak of the coronavirus disease (COVID-19) in Sanlitun in Beijing, China, July 17, 2020. REUTERS/Thomas Peter
A man takes pictures of iPhones in the new Apple flagship store on its opening day following an outbreak of the coronavirus disease (COVID-19) in Sanlitun in Beijing, China, July 17, 2020. REUTERS/Thomas Peter
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Arm Launches New Chip Technology for Smartphone Games

A man takes pictures of iPhones in the new Apple flagship store on its opening day following an outbreak of the coronavirus disease (COVID-19) in Sanlitun in Beijing, China, July 17, 2020. REUTERS/Thomas Peter
A man takes pictures of iPhones in the new Apple flagship store on its opening day following an outbreak of the coronavirus disease (COVID-19) in Sanlitun in Beijing, China, July 17, 2020. REUTERS/Thomas Peter

Arm Ltd, the British chip technology firm owned by SoftBank Group Corp, on Tuesday unveiled a set of new chip technologies aimed at making video games on smartphones look better while preserving battery life.

The latest products are designs for graphics processing units, or GPUs, most often used for video processing in gaming.

Arm makes money by licensing its blueprints to chip companies like MediaTek Inc who in turn use them to design chips for Android-based smartphones.

Arm on Tuesday also upgraded plans for its CPUs, or central processing units, the main brains in a computer. In both cases, Arm is aiming to improve the performance of chips while using less electricity, Reuters reported.

The latest push to improve mobile chips comes as Arm customers like Apple Inc and Qualcomm Inc are reducing their dependence on Arm.

While Apple and Qualcomm still pay Arm some licensing fees to ensure their chips work with software written for Arm-based chips, they now design many more critical parts of their chips themselves rather than using Arm-made designs.

"Our latest suite of compute solutions for consumer devices will continue to raise the threshold of what's possible in the mobile market," said Arm executive Paul Williamson in a blog announcing the new products.

"For developers, making these immersive real-time 3D experiences even more compelling and engaging requires more performance."



Dell Forecasts Downbeat Fourth-Quarter Revenue on PC Weakness

The logo of Dell Technologies at the Milipol Paris, the worldwide exhibition dedicated to homeland security and safety, in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris, the worldwide exhibition dedicated to homeland security and safety, in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Forecasts Downbeat Fourth-Quarter Revenue on PC Weakness

The logo of Dell Technologies at the Milipol Paris, the worldwide exhibition dedicated to homeland security and safety, in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris, the worldwide exhibition dedicated to homeland security and safety, in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell forecast fourth-quarter revenue below Wall Street expectations on Tuesday, weighed down by weaker demand for its traditional PCs and competition from rival server makers, sending its shares down more than 10% in extended trading.

Despite booming demand for the company's AI-optimized servers used to handle large artificial intelligence workloads, Dell's PC segment has been grappling with stiff competition from rivals and weak consumer spending amid an uncertain economy.

Enterprise customers are being mindful of their PC and IT spending in the short term, Dell executives said on a post-earnings conference call, adding that the company's consumer business was weaker than expected.

Dell forecast fourth-quarter revenue between $24 billion and $25 billion. The average analyst estimate is $25.57 billion, according to data compiled by LSEG.

"The entire PC market is in a transition period and moving towards on-device AI functionality which still isn't that defined and is expected to solidify in 2025," Gadjo Sevilla, senior analyst for AI and Tech at Emarketer, said.

Revenue from Dell's client solutions group, which houses its PC business, came in at $12.13 billion, below expectations of $12.43 billion.

Rival PC maker HP also provided a weak first-quarter profit forecast, while electronics retailer Best Buy trimmed its annual forecasts against the backdrop of weak consumer electronics demand.

Investors are also keenly eyeing Dell's costs after the company flagged in May that higher expenses to build AI-heavy servers and competitive pricing would hurt its margins.

"Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%," Dell's Chief Operating Officer Jeff Clarke said on Tuesday.

Revenue from the company's infrastructure solutions group unit, which houses its AI servers business, rose 34% to $11.37 billion and beat estimates.

Dell reported revenue of $24.37 billion in the third quarter, missing estimates of $24.67 billion.