(Bloomberg ) ARM Holdings Plc (ARM), the semiconductor designer whose products power Apple Inc.'s iPhone and iPad, reported slower growth in royalty revenues in the fourth quarter as the market for high-end smartphones cooled.
Royalty revenue rose 7 percent to $146.4 million, the Cambridge, England-based company said in a statement. That's compared to 13 percent growth in the third quarter and a 19 percent increase a year earlier.
ARM's royalties are being hurt by a slowdown in sales of high-end smartphones as the market moves toward cheaper models. The company, whose designs are used in more than 95 percent of mobile phones, is branching out into chips that will run servers and connected devices, such as smartwatches.