Apple has told Imagination Technologies that it will no longer use the company's products. Imagination said in a statement that it was informed by Apple that it would not use the group's intellectual property in its new products for the next 15-24 months and as such Imagination will not be eligible for royalty payments under the current license and royalty agreement.
Imagination's technology has been in Apple devices for many years, forming the basis of graphics processor units in Apple's phones, tablets, iPods, TVs and watches. Apple told the company that it was working on a separate, independent graphics design in order to control its products and will be reducing its future reliance on Imagination's technology.
Imagination said it requested more information from Apple to show it would not be violating Imagination's patents or intellectual property in future products, but had not yet heard back from the company. Imagination said it would be "extremely challenging" to design a brand new GPU architecture without infringing its intellectual property rights.
The announcement led to a dramatic fall in Imagination technologies' share price, of over 60 percent.
