Micro chip designer Imagination Technologies sees shares fall by more than 60% after being dropped by Apple
- Credit: PA
Shares in British chip designer and Apple supplier Imagination Technologies have plummeted more than 60% after revealing the US giant has said it will no longer use its products.
Imagination said on Monday that Apple, its largest customer, will no longer use the group's intellectual property in its new products in 15 months to two years' time, and therefore it will not be eligible for royalty payments.
Investors reacted badly to the news, with shares in the Hertfordshire-based group dropping 64% to 95p shortly after the market 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.
You may also want to watch:
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.
- 1 Two city businesses on the move as mystery new tenant hovers
- 2 Woman sexually assaulted in Norwich
- 3 Vision for multi-million pound new Norwich venue revealed
- 4 Norfolk-based Rick Wakeman 'stunned and proud' after being made a CBE
- 5 Norfolk cliffs fall man arrested on suspicion of murder released on bail
- 6 'People didn't know I existed' - Shopkeeper thrilled with new store
- 7 Scams in Norfolk this week: Hermes texts and electricity boxes
- 8 Ask the Expert: How much income will my £350,000 pension generate?
- 9 Family told baby with half a working heart has weeks to live
- 10 Woman on soft-food diet 'forever' after attack by kick-boxer partner
'Apple's notification has led Imagination to discuss with Apple potential alternative commercial arrangements for the current licence and royalty agreement.'