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
101 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
101 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
101 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
101 months ago
They're doing their own CPUs, the next step is the GPU.
Score: 7 Votes (Like | Disagree)
Loge Avatar
101 months ago
So many flops in that picture, no wonder they're not doing well.
Score: 6 Votes (Like | Disagree)
Crosscreek Avatar
101 months ago
Saturation is a bitch.
Score: 6 Votes (Like | Disagree)

Popular Stories

iOS 16 4 Web Push

Apple Confirms Governments Using Push Notifications to Surveil Users

Wednesday December 6, 2023 5:06 am PST by
Unidentified governments are surveilling smartphone users by tracking push notifications that move through Google's and Apple's servers, a US senator warned on Wednesday (via Reuters). In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from the tech giants to track smartphones. The traffic flowing from apps that send push notifications...
iOS 17

iOS 17.2 Will Add These 12 New Features to Your iPhone

Friday December 1, 2023 12:19 pm PST by
iOS 17.2 has been in beta testing for over a month, and it should be released to all users in a few more weeks. The software update includes many new features and changes for iPhones, including the dozen that we have highlighted below. iOS 17.2 is expected to be released to the public in mid-December. To learn about even more features coming in the update, check out our full list. Journal ...
iphone se 4 modified flag edges

iPhone SE 4 May Reuse Existing iPhone 14 Battery

Wednesday December 6, 2023 1:17 pm PST by
Recently, MacRumors has received details on the battery currently being tested on the upcoming fourth-generation iPhone SE, and the information corroborates previous findings in relation to the device. The iPhone SE 4, known by its device identifier D59, is expected to use the exact same battery found in the base model iPhone 14. Partially assembled prototypes of the next iPhone SE have been ...
best buy snowflakes

Best Buy's New Weekend Sale Has Record Low Prices on MacBook Pro and MacBook Air

Friday December 8, 2023 7:37 am PST by
Best Buy's month-long holiday sale continues this weekend with multiple all-time low prices on Apple's line of MacBook Pro and MacBook Air computers. In addition to Apple notebooks, Best Buy's event has discounts sitewide on home appliances, TVs, video games, and more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive...
beeper mini

Apple Puts a Stop to Beeper Mini's iMessage for Android Feature

Friday December 8, 2023 2:24 pm PST by
Apple appears to have closed the loophole that Beeper Mini used to bring iMessage to Android, putting a stop to blue bubbles from Android devices. Beeper Mini quit working earlier today, with users receiving "failed to lookup on server: lookup request timed out" error messages. Beeper said on Twitter that it is investigating the issue, but Beeper CEO Eric Migicovsky told TechCrunch that "all ...
maxresdefault

Review: Two Months With the iPhone 15 Pro Max

Thursday December 7, 2023 12:04 pm PST by
Apple's iPhone 15 lineup came out in September, and while most reviews are done shortly after a new device launches, we like to follow up with a longer term review that gives us an opportunity to provide a deeper dive into what it's like using these phones on a day to day basis for months. Subscribe to the MacRumors YouTube channel for more videos. MacRumors videographer Dan Barbera has been...
12

Apple to Launch Two iPad Air and Two OLED iPad Pro Models Early Next Year

Wednesday December 6, 2023 9:53 am PST by
To boost falling iPad sales, Apple has a major refresh planned for the iPad lineup in early 2024, according to Bloomberg's Mark Gurman. Apple plans to debut new iPad Air and iPad Pro models, both of which will feature notable changes. The iPad Air will come in two sizes like the iPad Pro for the first time. The smaller model will continue to measure in at 10.9 inches, but the larger version...
anker new gold

Anker Begins Countdown to Christmas Sale With Up to 50% Off Popular Charging Accessories

Thursday December 7, 2023 7:55 am PST by
Anker has launched its newest holiday sale, this one offering a special deal every day in the lead-up to Christmas. These sales offer up to 50 percent off select products, and include discounts on USB-C chargers, portable batteries, and much more. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment, which ...