A company that makes graphics processing chips for the iPhone saw its stock crash 69 percent after Apple announced it would no longer be using its hardware. Mia Womersley reports.
(Reuters) – Beware changes of mind at Apple.
That’s the painful lesson a U.K. chipmaker is learning Monday (March 3).
Shares in Imagination Technologies plunging a whopping 69 percent, to a seven year low after Apple announced it will no longer use the company’s graphics chips in the iPhone… within two years.
Apple holds a eight percent stake in the British company, which also makes chips for the iPad and Apple Watch.
Imagination says Apple was its biggest customer, earning just over $75 million last year off royalties and licensing fees from the company.
But now the company’s executives believe Apple’s developing its own graphics hardware instead.
In a statement Imagination said they doubted Apple could make their own graphics hardware without violating their patents.
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