Massive iPod sales have generated success for many of its partners, with ARM Holdings revealed as the latest beneficiary last night.

Profits and revenues at ARM both rose significantly as the company saw the benefit of strong Christmas iPod and mobile phone sales. It reported net fourth quarter profit of £4.5 million, compared to losses of £431,000 in the year ago quarter.

While the company remains vulnerable to any increased weakness in the value of the US dollar, it predicts a 20 per cent revenue increase in the year to come.