Imagination Technologies has been told by Apple, its biggest
customer, that the maker of iPhones, iPads and Apple Watches is to
stop using its graphics technology in its new products, sending
shares in the company crashing by more than 70 percent on Monday.
Imagination said Apple, which accounts for about half its revenue,
had notified the British firm it was developing its own graphics
chips and would no longer use Imagination’s processing designs in
15 months to two years time.
Apple has used Imagination’s technology and intellectual property
for many years. It has formed the basis of Graphics Processor
Units (“GPUs”) in Apple’s phones, tablets, iPods, TVs and watches.
Apple has asserted that it has been working on a separate,
independent graphics design in order to control its products and
will be reducing its future reliance on Imagination’s technology.
Apple has not presented any evidence to substantiate its assertion
that it will no longer require Imagination’s technology, without
violating Imagination’s patents, intellectual property and
confidential information. This evidence has been requested by
Imagination but Apple has declined to provide it.
Further, Imagination believes that it would be extremely
challenging to design a brand new GPU architecture from basics
without infringing its intellectual property rights, accordingly
Imagination does not accept Apple’s assertions.
In other words, we’ll see you in court. Seems petulant to do this in public.