Up to now, Apple’s custom silicon-on-a-chip (A10 Fusion, A9, A8 etc) have relied heavily on GPU designs from Imagination Technologies for graphics performance tasks. This means Apple pays Imagination a royalty for every iPhone and iPad sold; the company generates about its revenue from Apple.

Today, Apple announced that it will stop using Imagination Technologies intellectual property within two years, ending its royalty payments. $IMG stock plummeted in wake of the news, falling by 70% to eight-year lows.


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Author: Benjamin Mayo
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