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

(View all)
Avatar
59 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)
Avatar
59 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)
Avatar
59 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)
Avatar
59 months ago
They're doing their own CPUs, the next step is the GPU.
Score: 7 Votes (Like | Disagree)
Avatar
59 months ago
So many flops in that picture, no wonder they're not doing well.
Score: 6 Votes (Like | Disagree)
Avatar
59 months ago
Saturation is a bitch.
Score: 6 Votes (Like | Disagree)

Top Stories

'iPhone 12 mini' Name Reappears in Leaked Apple iPhone 12 Case Stickers

Friday September 25, 2020 1:58 am PDT by
Earlier this week a proven leaker claimed that the iPhone 12 lineup would be named "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max," and today the same nomenclature has appeared again in a photo depicting alleged stickers from unreleased Silicone iPhone cases originating from Apple's international distribution center in Ireland. The photo shows three stickers with the...

New Images Leak of iPhone 12 Braided USB-C to Lightning Cable

Thursday September 24, 2020 2:37 am PDT by
Rumors suggest Apple's upcoming iPhone 12 models will ship with a new Lightning to USB-C cable that includes a braided fabric design. Images of the purported cables were leaked in July, and today leaker Mr White has shared new images that give us a closer look at what we might get included in the iPhone 12 box. The photos show a USB-C to Lightning cable with a clearly braided design rather...

New Version of Microsoft Office Coming Next Year That Won't Require a Subscription

Thursday September 24, 2020 1:53 am PDT by
Microsoft will next year offer a new perpetual release of Microsoft Office for Mac and Windows that doesn't require a subscription to use, according to the software giant (via Windows Central). "Microsoft Office will also see a new perpetual release for both Windows and Mac, in the second half of 2021," said Microsoft in a blog post announcing the next version of its Exchange server,...

Apple Releases iOS 14.0.1 With Fix for Bug That Resets Default Apps After Rebooting

Thursday September 24, 2020 10:12 am PDT by
Apple today released iOS 14.0.1, the first update to the iOS 14 operating system that was released on September 16. Today's update is a bug fix update addressing issues that weren't able to be fixed in the initial iOS 14 launch. The iOS 14.0.1 update is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. ...

Apple's iPhone 12 Event Could Happen on October 13 Based on Rumors From Mobile Operators

Wednesday September 23, 2020 11:51 am PDT by
Apple's upcoming iPhone-centric event could perhaps be held on Tuesday, October 13, according to information shared with MacRumors by an employee at a UK cellular carrier. There's no way for us to confirm the dates at this point in time nor are we sure on the credibility of the source, but even without a rumor, Tuesday, October 13 is a good guess based on Apple's historic launch timelines, ...

Apple Releases macOS Catalina 10.15.7 With Fixes for WiFi Bug, 27-Inch iMac Graphics Issues

Thursday September 24, 2020 10:32 am PDT by
Apple today released macOS Catalina 10.15.7, the latest update to the macOS Catalina software. macOS Catalina 10.15.7 fixes several major bugs that Mac users have been experiencing, and it comes a month after the latest macOS Catalina release. The ‌‌‌macOS Catalina‌‌‌ 10.15.6 Supplemental Update can be downloaded from the Mac App Store using the Update feature in the System...

Apple Designs Custom Face Mask for Corporate and Retail Employees [Updated with Unboxing]

Wednesday September 9, 2020 11:13 am PDT by
Apple's design team has created a new kind of protective mask that's being distributed to retail and corporate employees, reports Bloomberg. The mask is called the Apple Face Mask and it was developed in-house in Cupertino by the Engineering and Industrial Design teams at Apple. Last week, an Apple employee sent MacRumors an image of the mask design, which can be seen up above. The Apple ...

Video Offers Closer Look at Apple Face Mask

Friday September 25, 2020 5:25 am PDT by
YouTube channel Unbox Therapy has today shared a new video giving a closer look at Apple's reusable face masks for corporate and retail employees. Apple's own face mask was designed by the company's Engineering and Industrial Design teams amid the global health crisis for corporate and retail employees, and the boxes include Apple's famous "Designed by Apple in California" text. The...

Top Stories: iOS 14 Feature Tour, 'iPhone 12 mini' Rumors, Apple Watch Band Controversy

Saturday September 26, 2020 6:00 am PDT by
Things started to calm down a bit this week following last week's rush of media event, Apple Watch and iPad launches, and the release of iOS 14 and other operating updates. But that doesn't mean there wasn't still a lot of news, from digging deeper into iOS 14 to more iPhone 12 rumors to the uproar over trying to exchange band sizes on the new Apple Watch. On top of all of that, we heard...

Interest in iOS 14 Home Screen Ideas Helps Pinterest Break Daily Download Record

Wednesday September 23, 2020 4:37 am PDT by
Apple's introduction of widgets on the Home Screen in iOS 14 has driven a surge in interest among users looking to customize their iPhone, and that has reportedly had a knock-on effect for Pinterest, whose iOS app has seen record downloads as users flock to its content seeking design inspiration. As reported by TechCrunch, App Store intelligence firm Apptopia was first to note the impact of ...