Arm Warns of Phone Market Weakness, With AI Helping Offset Slump

Arm Holdings Plc warned of sluggishness in the smartphone industry, crimping a vital source of the chip company’s revenue, while promising that AI data center growth would more than offset the slump.

During a conference call to discuss fourth-quarter results, Chief Executive Officer Rene Haas said he saw unit growth for phones “flip to negative” last quarter. But the slowdown is concentrated in the lower end of the market, he said, limiting the impact on Arm.