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
63 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
63 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
63 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
63 months ago
They're doing their own CPUs, the next step is the GPU.
Score: 7 Votes (Like | Disagree)
Loge Avatar
63 months ago
So many flops in that picture, no wonder they're not doing well.
Score: 6 Votes (Like | Disagree)
Crosscreek Avatar
63 months ago
Saturation is a bitch.
Score: 6 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
macbook pro magsafe

MagSafe is Coming Back to the Mac: A Look Back at Apple's Original Magnetic Charging Technology

Friday January 15, 2021 12:16 pm PST by
Surprise late night rumors last night provided us with our first in-depth look at what we can expect from the new MacBook Pro models that are coming in 2021, and there are some significant changes in the works. Along with additional ports, a new flat-edged design, and the removal of the Touch Bar, Apple's updated MacBook Pro machines will readopt MagSafe. MagSafe in the 2021 MacBook Pro...