The Tech Report recently attended a conference hosted by ARM in which they described their business model and the various types of licenses that they offer manufacturers.  ARM is ahead of the curve in that they have fully abandoned being a hardware company, similar to what IBM did long ago and what AMD has attempted to do with GLOBALFOUNDRIES.  They develop their new architectures in house but instead of fabbing them they license out the technology to anyone who wants to make their processors for use in their own products.  This allows customization to be provided for their customers to ensure the processor meets their needs exactly.  Take a peek at their three licensing models and their overall business model in the full article.

"ARM summoned some of the world's most technically inclined journalists and analysts to a confab at its headquarters in Cambridge, England recently. In an obvious case of poor judgment, I was also allowed to attend. Happily, I now get the chance to tell you another side of the story of the next generation of low-power processors."

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