Apple, just acquire ARM!

The tech industry's M&A season has arrived, with two multibillion-dollar deals announced in the past two months alone. NXP Semiconductors, a Dutch company that develops chips for debit and credit cards, acquired its U.S. rival Freescale for $11.8 billion in early March. Intel is currently in talks to acquire programmable processor maker Altera, a deal that could fetch more than $10 billion. ARM could be the next company to be acquired.

The reason people speculate that Apple might acquire ARM is simple: the company is too important to Apple's future success.

The demand for Apple products remains at an all-time high, and Apple will continue to work hard to meet it. ARM is Apple's largest and most important supplier. In fact, although ARM does not produce Apple's chips itself, its chip designs are important to Apple's success. In addition, the relationship between Apple and ARM will become closer in the coming years as Apple intends to eliminate Intel from its supply chain.

Taking these factors into account, analysts suspect that Apple may make a strategic investment in ARM to prevent ARM from engaging in predatory behavior that would threaten Apple's future success.

Apple certainly has reason to worry that ARM may engage in predatory behavior. ARM is ahead of its peers in chip design, and there must be many companies willing to pay high prices to purchase ARM's technology.

For example, ARM recently released a blueprint for a new, higher-performance processor designed for smartphones and tablets that is scheduled to be released next year. The new design is 3.5 times faster than a comparable chip from 2014, while using 75 percent less energy.

Obviously, Apple will definitely want to take this new technology into its own hands to maintain its leading position in the mobile field.

Analysts believe that Apple may have to spend 15 pounds per share to buy the controlling stake it needs. ARM often becomes the protagonist of merger and acquisition rumors, and there is no guarantee that the latest market rumors are necessarily based on facts.

ARM's profits are expected to grow 69% this year and then another 20% in 2016, so although a formal deal has not yet been announced, ARM is still a company with excellent growth potential.

Analysts recently discovered a stock whose company has the potential to more than triple its revenue in five years. I believe ARM is also one of the important manufacturers standing behind the market. In fact, like ARM, the company is already ahead of its competitors in terms of competitive advantages. It is led by a team with a sense of innovation and reform.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.