Apple GPU Supplier Imagination Technologies Announces Cuts Amid Slowing iPhone Sales

British microchip designer and major Apple supplier Imagination Technologies announced additional cost cuts this morning, following a significant restructuring program unveiled by the UK firm only last month.

The company, which supplies the PowerVR graphics architecture in Apple's iPhones and iPads, said it would reduce its cost base by an additional £12.5 million ($18 million) by April 2017, on top of the £15 million in cost cuts announced in February. Two hundred staff now face redundancy as a result, adding to the 150 job cuts announced last month.

Tough trading conditions and a slowdown in iPhone shipment growth is said to be behind the decision, after the company posted an operating loss for the year to the end of April.

Imagination Technologies
"This swift and decisive action will put us back on a sound financial footing and will enable us to have the necessary resources to further strengthen our three core businesses," the company's interim chief executive Andrew Heath said in a statement. "The ongoing operational review will identify clearly where we need to focus, building on our current strengths and allocating the right capital to ensure growth and attractive returns."

Imagination Technologies has reported financial difficulties for several years, despite repeated expectations that iPhone sales would boost its revenues. Shares dropped 10 percent last year when the company reported a first-half loss, and nosedived as much as 18 percent when the restructure was announced in February. The company has also put its digital radio business Pure up for sale.

Apple has been a licensee and stakeholder in Imagination Technologies since at least 2008. The two companies have worked closely together over the years, with Apple being a key investor in the graphics firm since it raised its stake to roughly 10 percent in mid-2009. In 2014 Imagination announced an extended licensing agreement with Apple. However, it has been under pressure to reduce its dependence on Apple since at least 2012 because of declining average royalty rates.

PowerVR Series7XT Plus GPU - ALU architecture_2_575px
Imagination announced the next iteration of its PowerVR Rogue graphics architecture at this year's CES in January. The PowerVR Series7XT Plus builds on the Series7XT GPU used in the iPad Pro, with a focus on improved camera and vision processing capabilities for photography-based applications.

It remains to be seen whether the new chips will appear in Apple's rumored 'iPad Pro' branded 9.7-inch tablet set to launch next week, the iPhone 7 expected this September, or indeed in any other future Apple devices.

Top Rated Comments

bladerunner2000 Avatar
84 months ago
Apple should buy Imagination. They already have the 10% of the company.
Why do so many members on MacRumors have this idea that Apple should just buy everyone?
Score: 10 Votes (Like | Disagree)
arubinst Avatar
84 months ago
Why do so many members on MacRumors have this idea that Apple should just buy everyone?
Apple should buy me. I already have almost every product they make.

My house looks like an Apple Store ;)
Score: 9 Votes (Like | Disagree)
Max(IT) Avatar
84 months ago
I don't like this kind of "journalism"... Imagination Technologies is in financial troubles since 2012. This has nothing to do with expected slowdowns on iPhone sales in the actual quarter.
It's just a clickbait.
Score: 8 Votes (Like | Disagree)
Juan Andrés Avatar
84 months ago
They're doing their own CPUs, the next step is the GPU.
Score: 7 Votes (Like | Disagree)
Loge Avatar
84 months ago
So many flops in that picture, no wonder they're not doing well.
Score: 6 Votes (Like | Disagree)
Crosscreek Avatar
84 months ago
Saturation is a bitch.
Score: 6 Votes (Like | Disagree)

Popular Stories

iPhone 14 Pro Lineup Feature Purple

Apple Planning to Hold iPhone 14 Event on September 7

Wednesday August 17, 2022 9:51 am PDT by
Apple is aiming to hold its first fall event on Wednesday, September 7, reports Bloomberg's Mark Gurman. The event will focus on the iPhone 14 models and the Apple Watch Series 8. The standard iPhone 14 models are expected to get few changes, but the iPhone 14 Pro models will include updated camera technology, the removal of the notch in favor of a pill-shaped and hole-punch cutout, an A16...
iOS 15

Apple Releases iOS 15.6.1 and iPadOS 15.6.1 With Bug Fixes

Wednesday August 17, 2022 9:50 am PDT by
Apple today released iOS and iPadOS 15.6.1, minor updates to the iOS and iPadOS 15 operating systems initially released in September 2021. iOS 15.6.1 and iPadOS 15.6.1 come a month after Apple released iOS 15.6 and iPadOS 15.6 with new Live Sports features and bug fixes. The iOS 15.6.1 and iPadOS 15.6.1 updates can be downloaded for free and the software is available on all eligible devices...
tiktok logo

TikTok's In-App Browser Reportedly Capable of Monitoring Anything You Type

Thursday August 18, 2022 4:25 pm PDT by
TikTok's custom in-app browser on iOS reportedly injects JavaScript code into external websites that allows TikTok to monitor "all keyboard inputs and taps" while a user is interacting with a given website, according to security researcher Felix Krause, but TikTok has reportedly denied that the code is used for malicious reasons. Krause said TikTok's in-app browser "subscribes" to all...
airpods pro black background

AirPods Pro 2: Five New Features and Improvements to Expect

Sunday August 14, 2022 3:28 pm PDT by
Apple's second-generation AirPods Pro are finally nearing launch, with a release expected later this year. If you are considering upgrading to the new AirPods Pro once they are released, keep reading for a list of five new features to expect. In addition to all-new features, the second-generation AirPods Pro will likely adopt some features added to the standard AirPods last year. H2 Chip ...
ipados 16 stage manager

Apple Criticized for 'Fundamentally Misguided' Approach to Stage Manager in iPadOS 16

Friday August 19, 2022 1:57 am PDT by
Stage Manager in the iPadOS 16 beta is receiving heavy criticism for being "fundamentally misguided" in its approach to bringing a new level of multitasking to the iPad experience, with some even calling on Apple to delay the feature entirely due to its shortcomings. Federico Viticci, the founder and editor in chief of MacStories and a prominent member of the Apple community, outlined his...
M2 Pro and Max Feature

3nm M2 Pro Chip for MacBook Pro Reportedly Entering Production Later This Year

Thursday August 18, 2022 7:39 am PDT by
TSMC will begin production of 3nm chips for Apple by the end of 2022, according to a report this week from Taiwan's Commercial Times. A separate report from the publication claimed that TSMC will begin mass production of 3nm chips in September. The report, citing industry insiders, claims that the M2 Pro chip may be the first to use TSMC's advanced 3nm process. Bloomberg's Mark Gurman...