It is not worth to rely on only one partner for business. Imagination Technologies has been supplying graphics for Apple for almost 10 years. Recently, this company expired what this rule means. Apple does not design their smartphones in 100% and they use third-party solutions. This applies even to the elements of their own chipset. Every company thinks that close cooperation with Apple is the dream. However, Imagination Technologies has found that this collaboration has its drawbacks. Shares of the company have fallen by 70% after only one statement from Apple.
Giant from Cupertino has been one of Imagination Technologies major investors since 2008. About 50% of the revenue of this British company comes from Apple. Also, 8.2% of Imagination Technologies shares belong to the iPhone manufacturer. Apple even was close to total acquisition of Imagination Technologies a year ago, but the transaction did not take place. That is why Apple’s decision is controversial. On the other hand, it is logical that the Cupertino giant wants to have 100% control over the design of their devices in the smallest details.

Apple wants to design and produce its own GPU graphics module.

Currently, Apple GPU chipsets are based on the PowerVR licence, owned by Imagination Technologies, of course. However, Cupertino representatives claim that their company is able to produce their own graphics module from scratch. This means that Apple is going to design from scratch the GPU for future iPhones and iPads. It is estimated that this will happen from 15 months to 2 years. The plan is quite ambitious, especially since we are talking about a completely new ground for Apple. However, everyone (except Imagination Technologies) took this statement very seriously. The shares have fallen by as much as 70%.

Imagination Technologies shares

Imagination Technologies doubts in Apple’s statement.

There is nothing to cheat, such a statement from Apple is a great blow to the British company. That is why Imagination Technologies had to react swiftly and published the statement on this matter. It turns out that according to the British company, Apple does not have the knowledge to design new graphics without infringing intellectual property and Imagination Technologies patents. Apple has experience in designing of CPUs, but GPUs are a different story. It seems that we are waiting for an interesting clash between these two companies. Apple certainly has a plan, but we do not know whether it is based on talented engineers or lawyers.

Source: 9to5mac

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