Processor technology licensing company, ARM Holdings saw a drop in its stock by 9 percent in afternoon trading on Tuesday. The shares took a dip after Deutsche Bank cut its rating on the stock due to probable price fall in the coming months.

Deutsche Bank analyst Kai Korschelt said in a statement that the coming months are tough for ARM and licensees because there is going to be price cut on mobile processor chips. He rated ARM shares ‘sell’ down from ‘hold’.

ARM has been in the mobile technology business for some time now and its biggest licensees are NVIDIA and Qualcomm. ARM develops the processing technology and then licenses it to chip manufacturing companies. These chips are in turn used in mobile computing devices like smartphones and tablets.

With intrusion from a big company like Intel, the market has begun shaking for ARM, who still holds a strong status in smartphones and tablets. That might be one of the reasons why the German bank forecast a slow growth in the coming months.

After conquering the smartphone and tablet market, ARM is also now moving into bigger segments with technologies ready to be licensed for servers, PCs and televisions.

In recent events, Intel plunged into the smartphone market. It is not news that Intel has a strong position in personal computing market with its Core i-series of processing semi-conductors. The China-based smartphone manufacturer ZTE, world’s fourth largest phone maker, introduced Intel-based smartphone Grand X IN at IFA show in Berlin. It uses Intel’s Atom Z2460 Medfield processor.

It is not news that Intel has already made a strong move in tablet market with a number of Core i3-based Windows 8 slates arriving come Fall, including Microsoft’s Surface Pro.

Some of the widely used ARM-based devices are iPhone, iPad, Asus Transformer series, Samsung Galaxy series and Google Nexus 7.

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