Shares in British blue chip firm plummet due to Apple divorce
Imagination Technologies experience a 64% fall as they part ways with Apple
by Abi Moses on 3rd April, 2017
Today it has been announced that shares in blue chip firm, Imagination, have plummeted, with the company experiencing a rather large blow as it stops working with tech giants, Apple. Falling 60% after revealing the US company is said it will no longer use its products, the British firm has felt the wrath of putting most of their eggs in one basket.
Investors reacted badly to the news, with shares in the Hertfordshire-based group dropping 64% to just 95p immediately after the markets opened.
Imagination said: "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."
It added that Apple has "not presented any evidence to substantiate its assertion that it will no longer require" its technology, without violating its patents.
The statement continued: "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.
"Apple's notification has led Imagination to discuss with Apple potential alternative commercial arrangements for the current licence and royalty agreement."
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