How Long Will Apple Inc. (AAPL)’s Edge Last?

How long will Apple’s edge last?
ARM Holdings plc (ADR) (NASDAQ:ARMH)’s story highlights the intensifying competition among Apple Inc. (NASDAQ:AAPL) and its competitors. Apple’s willingness to pay ARM higher royalties echoes the intensifying race to stay ahead. Even more, ARM’s surge in its stock price after the 64-bit processor was announced means that investors acknowledge that competitors will likely quickly adopt the technology, too.

Indeed, just hours after Apple Inc. (NASDAQ:AAPL)’s event, Samsung confirmed that its next generation of smartphones will feature 64-bit processors. However, Samsung may not benefit as much until Google Inc (NASDAQ:GOOG) updates Android with 64-bit support. Apple has already reengineered iOS 7 for 64-bit processing, which includes its first-party apps, but the next step will be for third-party developers to update their apps. The journey to 64-bit will be long and arduous; Apple is just the first to take a meaningful step.

Is Apple Inc. (NASDAQ:AAPL)’s willingness to adopt ARM Holdings plc (ADR) (NASDAQ:ARMH)’s technology, despite higher royalties, another sign of intensifying competition in the smartphone market?

The article Apple’s New A7 Chip Sends Supplier’s Stock Soaring originally appeared on Fool.com.

Fool contributor Daniel Sparks owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Qualcomm. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.