To be clear, ARM designs the SoC. Apple licenses and takes that design and makes some modifications to it before sending it to a fab to be produced. Some very good modifications by all accounts. If I remember, they lured some senior CPU designers away from AMD some years back. But the bulk of the SoC is designed by ARM.
There seems to still be some confusion around this issue. ARM does indeed design CPUs and GPUs and makes the intellectual property available to others through two different licensing programs. An ARM processor licensee is allowed to incorporate one or more of the ARM designed processors into its own SoC. Examples of processor licensees are Marvell, MediaTek, and Samsung (Qualcomm occasionally goes this route too). An ARM architecture licensee creates its own custom designed processors that are compatible with the ARM ISA (Instruction Set Architecture). Apple and Qualcomm (Krait CPUs) are examples of architecture licensees.
Apple purchased PA Semi in 2008 and began designing its own custom CPUs. While these CPUs use the ARM instruction set, they share nothing in common with ARM's Cortex series of CPUs. Where ARM's designs focus on simpler, narrower cores running at higher clock speeds (Cortex-A53), optionally paired with more complex, higher-performing cores (Cortex-A57) in a big.LITTLE configuration, Apple's designs focus on complex, wider cores running at lower clock speeds. To be clear, ARM is not involved in the design of Apple's CPUs anymore than Intel is involved in designing AMD's CPUs (AMD licenses the x86 instruction set).
As a fabless chip designer (like most all companies are nowadays), Apple then contracts with an outside vendor like Samsung or TSMC to manufacture its design.
As a side note, Qualcomm purchased the Imageon GPU IP from AMD and used it as the basis for its Adreno GPUs.
- Matt Humrick, Mobile Editor, Tom's Hardware