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case study

Great British companies

ARM

In the first of a series of articles, Ian Marcousé looks at a world-leading British company that you rely on every day and that earns 99% of its income through exports, but that you’ve never heard of

Apple products rely on ARM designs
APPLE

ARM is a business you have probably never heard of, yet its products are fundamental to every mobile phone, iPhone, iPad, Playstation 3 and Xbox 360. Across the globe, this British company has to compete head-on with the US giant Intel, yet ARM is gaining market share. Furthermore, although 99% of its revenues come from overseas, 41% of its staff are based in Britain. In 2010 and 2011 it is actively recruiting in Britain for more staff, interns and graduate trainees (95% of its 1,800 employees are graduates). Average staff remuneration in 2010 was £84,000.

ARM was founded in 1990. In effect it was a spin-off from Acorn Computers, a pioneer of its time. ARM began with 12 scientists working in a barn in Cambridge. Because of the success of this team at Acorn, investors (including Apple, still in its infancy) put in £1.5 million. ARM’s first chief executive, Robin Saxby, had a background in the field of electronics, notably Motorola. He took ARM from its start-up phase through to flotation on the stock market in 1998.

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Previous

Heading to uni: what the prospectus doesn’t tell you

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Did the coalition inherit economic meltdown?

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