April 5, 1998: Apple Sells ARM, Feels Better

Every model of Newton was powered by a chip produced by Advanced RISC Machines. Not only were the low power RISC processors well suited to the tasks required by the Newton, but the ARM moniker led to such delightfully punned names as the StrongARM SA-110.

ARM was an effort undertaken by Apple, Acorn Computers and VLSI technology to produce chips for the "surefire" hit Newton. In the creation of the fabless chip designer (ARM licenses other manufacturers to produce their designs), Apple became the stockholder with the lion’s share of ARM stock.

As Apple began planning to spin off the Newton into its own company, the continued investment in ARM didn't make as much sense. Additionally, Apple needed revenue to bolster its quarterly numbers and the stock in ARM was enjoying massive success. So it was this week in 1998 that Apple began selling off its sizable number of shares in chipmaker ARM, netting a very nice profit along the way. Although Apple's large holding in ARM is gone, Apple continues to use ARM chips in the iPod.