Imagination Technologies Remains For Sale as No Progress Made in Dispute With Apple

British chipmaker Imagination Technologies today disclosed that its formal sale process continues, despite successful restructuring and a return to profitability in its fiscal year ended April 30, 2017. It also said it is reviewing options in its dispute with Apple, but added that no progress has been made.

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"The management team have done a tremendous job over the last year, turning the business around, returning it to profitability and with a clear strategy for growth," said chairman Peter Hill. "It's therefore highly regrettable that this progress has been so severely impacted by the stance taken by Apple."

Earlier this year, Apple informed Imagination that it plans to stop using the company's patented PowerVR graphics technology in devices like the iPhone in between 15 months and two years. Accordingly, Apple said it will stop making royalty payments to the British firm by late 2018 or early 2019.

Apple instead plans to use its own in-house graphics architecture, eliminating the need to pay royalties for the PowerVR technology.

Apple is Imagination's biggest customer, reportedly accounting for up to half of the company's revenue. The chipmaker's stock plunged as much as 70 percent after it revealed Apple's plans, as analysts predict the company could become loss-making within two years without royalties from iPhone sales.

Imagination insists that Apple is making "unsubstantiated assertions," as the iPhone maker has supposedly yet to present any evidence to prove that it will no longer require the British firm's technology, at least not without violating its patents, intellectual property, and confidential information.

"Apple's unsubstantiated assertions and the resultant dispute have forced us to change our course, despite the clear progress we have been making," said Andrew Heath, CEO of Imagination Technologies.

Imagination said, following interest in the entire company, it decided to initiate a formal sale process on June 22. The chipmaker today disclosed that preliminary discussions continue with potential bidders.

Top Rated Comments

cmaier Avatar
65 months ago
Imagination insists that Apple is making "unsubstantiated assertions," as the iPhone maker has supposedly yet to present any evidence to prove that it will no longer require the British firm's technology, at least not without violating its patents, intellectual property, and confidential information.

That's not how it works. If Imagination thinks Apple is infringing its IP, then it has to prove it. Apple doesn't have to prove the reverse.
Score: 24 Votes (Like | Disagree)
flat five Avatar
65 months ago
I think so, and if it does happen, with any luck Imagination will have them in British courts and Apple will find it a lot tougher to win.
I can't see how they won't steal their designs, or just use them for free, not like it's the first time Allles done this...
i really don't think this is about Apple trying to save money or not pay Imagination.
they currently license the tech for about $100million per year... in devices that brought Apple over $150billion in revenue.. like, Apple is getting a serious bargain from Imagination.. for Apple to do what's being hinted at (in house GPU design), they're going to be spending much more than they spend on Imagination in R&D costs alone.

Apple's goal, it seems to me, is to put themselves in position to continue offering users a different experience than what everyone else is doing.. and the more everyone is using the same technology, the more difficult it becomes for Apple to differentiate themselves from the pack..

it appears (to me at least), Apple is positioning itself for the next 10years (and beyond).. the last 10 years has been iOS.. the next 10 will/could likely be viewed as iOS 2.0.. the AR years.

their own GPU along with their own software (Metal) gives them a pretty serious advantage, or at least a very strong standing amongst other players, moving into the future (imo).
Score: 17 Votes (Like | Disagree)
cmaier Avatar
65 months ago
Apple killed them on purpose, the EU need to fine them.
Lol. So it's your theory that for some reason apple has some sort of obligation to buy imagination's technology forever?
Score: 12 Votes (Like | Disagree)
citysnaps Avatar
65 months ago
An excellent decision on Apple's part.

Sometimes you just need to move on and go with your own tech.
Score: 12 Votes (Like | Disagree)
cmaier Avatar
65 months ago
i really don't think this is about Apple trying to save money or not pay Imagination.
they currently license the tech for about $100million per year... in devices that brought Apple over $150billion in revenue.. like, Apple is getting a serious bargain from Imagination.. for Apple to do what's being hinted at (in house GPU design), they're going to be spending much more than they spend on Imagination in R&D costs alone.

Apple's goal, it seems to me, is to put themselves in position to continue offering users a different experience than what everyone else is doing.. and the more everyone is using the same technology, the more difficult it becomes for Apple to differentiate themselves from the pack..

it appears (to me at least), Apple is positioning itself for the next 10years (and beyond).. the last 10 years has been iOS.. the next 10 will/could likely be viewed as iOS 2.0.. the AR years.

their own GPU along with their own software (Metal) gives them a pretty serious advantage imo.
I agree. They've decided that, for their own purposes, there is a better architecture than imagination's, with the added benefit that they can control it and use it as a differentiator. They are probably going to come up with their own thing that scales from watch to desktop, and provides optimized performance per watt with their own software technologies.
Score: 8 Votes (Like | Disagree)
cmaier Avatar
65 months ago
Oh I don't doubt that...
[doublepost=1499208685][/doublepost]

The pound dropped because of the vote so Aplle wacked its prices up, by 25%... of course the pound has recovered a fair bit but Apple hasn't dropped its prices..
And we are not xenophobic loonies, were Americans xenophobic loonies for wanting independence? Such an utterly ridiculous term used by left wing liberalist crazies or those that have no clue about it all.
The pound dropped from more than 1.6 dollars to less than 1.3, so 25% doesn't seem outrageous (especially since they can't change their prices daily)

And the U.K. had representation in the EU. The American colonies had none in England. Big difference.

So now you get to live with your vote. Have fun with that.
Score: 8 Votes (Like | Disagree)

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