ARM Fails to Score on Some Levels: Windsor

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Oct. 22 (Bloomberg) -- Richard Windsor, Founder of Radio Free Mobile, discusses earnings by ARM Holdings and new announcements in tech by Apple and Nokia. He speaks on Bloomberg Television's “The Pulse.” (Source: Bloomberg)

Apple has already adopted it.

Others have as well.

This will drive market growth, isn't it?

Yes.

Today's results are a clear sign of that.

I think he is right when he says the royalty licenses that he has signed are a good indication of future growth.

On that front, all is looking fairly rosy.

These licenses are all going to be outside of the pc market, where arm is continuing to fail to score.

Secondly, from the investment point of view, if you look at the customers of arm rather than arm itself.

Do you think he deserves a little bit of a drop from here then?

I must admit i have been negative on arm for some time and it has not worked out too well for me.

If you look at the fundamentals, a customer of arm will deliver much more value in terms of profit to a shareholder at a much lower multiple.

It is a much better choice for a long-term investment.

In terms of what 64-bit though ultimately deliver for the tech landscape, how quickly does that ramp up?

We have seen apple starting to lead developers on ios.

Samsung says they will have one soon.

What are the implications of that?

It is a sign of a continuation arms race in terms of how probable is the -- how powerful is the processor in my device and is that making a difference to the consumer going out and purchasing the device?

That is set to continue.

If you look at the functionality, it is getting more and more advanced.

More and more horsepower is required to run it.

64-bit is the next logical step.

Or these factory-powered devices, arm is right there.

We have an announcement from nokia this morning.

It hit -- it has unveiled its first ever tablet.

Is it more important for microsoft and the surface?

I think so, yes.

The issue with this tablet is it is running a platform that is windows rt.

If you look at what microsoft has managed to do over the last 12 months, it has been nothing other than a total disaster.

In terms of the tablet, it is good that nokia is out there and they are doing that formfactor and looking to extend their form factor into that space.

The problem they have got is that no one is going to buy this platform because it is between two camps.

It is neither a real tablet nor a real pc.

What will it take for them to turn it around?

As they start to integrate nokia and bring that in-house, into microsoft, the skill base that comes from that business from finland, what will that mean for microsoft?

One of the possibilities here is that windows rt starts to sell as a nokia-esque platform and it starts to sell in its own right.

I think that is a possibility.

The other possibility is that this is just a stopgap and what happens is the next generation, you will see the nokia and microsoft devices on intel and a full version of windows 8. then you can see microsoft starting to make an impact on the tablet and computer market.

We will see apple announce new ipads this evening.

It looks like the mini is doing very well.

In terms of the formfactor.

Is that where we should be focusing now with apple?

There has got to be a lot of sound surrounding that story tonight.

There is talk of tv's and all kinds of other things to read any potential for surprise?

The one surprise that could turn out is something for apple tv.

People have been talking about it for a long time and there have been rumors for a long time about apple doing a proper big- screen television device.

Because of the high pricing of those devices, it could mean a significant incremental revenue stream for apple.

That would be a surprise for me.

The focus will be a new version of the ipad.

It will probably the lighter and thinner with good resolution and you can see the retina display.

It is the real selling point of these devices, the fact that they are now better powered and have an operating system that is geared towards 64-bit.

The guts of these things, the shiny screen and a nice thing cover -- thin cover are better than the competition.

From apple's perspective, i would not say that is the case.

If you look at the competing qualcomm, that is a very good processor.

It is powering a lot of devices.

I think what will drive ipad shipments is going to be the look and feel of the device, the screen resolution, but most of all, it will be the huge collection of high-quality applications that you can get on the ios ecosystem.

That is what will keep customers loyal to the ipad over the next 12 months or so.

Always a pleasure to speak with you.

Rich windsor.

Let's move on and continue the conversation around the ipad.

The updated version out tonight.

The devices are a key piece of apple's empire and they have made life miserable for the pc industry.

Jon erlichman has more.

We would like to show it to you today for the first time.

We call it the ipad.

This text has been automatically generated. It may not be 100% accurate.

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