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.
"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
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.
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).
Sometimes you just need to move on and go with your own tech.
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.