“The British firm that supplied the designs for Apple’s graphics chips is up for sale, less than three months after the maker of the iPhone said it would no longer use those designs and would instead come up with its own,” Joon Ian Wong writes for Quartz. “That announcement was made public by the firm, Imagination Technologies, on April 3.”
“Imagination’s stock crashed nearly 70% on the day the news hit, and the stock has traded roughly in that range ever since,” Wong writes. “But today the stock shot up about 17% as investors were told of a possible sale. The company said it had received interest from several buyers, and so would start a formal sale process today.”
Wong writes, “All told, there were just 81 days between the news that Apple planned to stop using Imagination’s designs and today’s sale announcement.”
Read more in the full article here.
MacDailyNews Take: As John Wayne said so well:
Life is tough, but it’s tougher if you’re stupid.
SEE ALSO:
Former Apple supplier Imagination Technologies puts itself up for sale – June 22, 2017
Imagination Technology starts dispute process with Apple – May 4, 2017
UBS: Imagination likely to see Apple royalties slashed, then cease altogether – April 19, 2017
It’s getting even tougher to be an Apple supplier – April 19, 2017
Without Apple, Imagination Technologies’ PowerVR has no future – April 10, 2017
Apple steps up homegrown GPU plans with London hiring spree – April 9, 2017
Why Apple’s ditching of Imagination is critical for the future of the iPhone – and maybe even the Mac – April 5, 2017
Apple aims for more control, less cost as it accelerates in chip design – April 5, 2017
Apple could look to buy Imagination Technologies after ditching the chip firm, share price plunge – April 4, 2017
Imagination Technologies’ shares collapse after Apple dumps UK chip designer – April 3, 2017
Apple nabs top talent from iPhone 7 GPU chipmaker Imagination Technologies – October 13, 2016
After failed takeover talks with Apple, Imagination Technologies sells stake to state-owned Chinese company – May 9, 2016
Apple in ‘advanced talks’ to acquire Imagination Technologies for PowerVR GPU – March 22, 2016
Apple are aquiring a reputation as bad clients. Rapacious even. There was that frfracas over the manufacturing of crystals and the famous “put your big boy trousers on” comment by the Apple “manager” in charge of the deal.
Chew them up and spit them out. Americans love treating people like shit but it doesn’t go down well in civilised countries.
Don’t be ridiculous. Apple tried to buy them but the deal fell through. This is the second time I can think where Apple attempted to buy a supplier/contractor and they said no, so Apple went looking elsewhere (or in house). I believe the other was that battery company – forgot the name.
Furthermore, Apple cannot be blamed for Imagination’s inability to score other clients/customers. Imaginations really problem was the fact that both ARM and Qualcomm had home grown graphics built-in to their SoC designs, so most went with that.
The other one was the company that made sapphire glass. I’d say you can slam Apple if Apple required a company to only do business with Apple and then they left them high and dry. I believe that is not the case. Now, the company likely scaled up to handle the chips Apple needed, but they should have just scaled back down. It’s not Apple’s job to keep its vendors fed.
Invariably, there’s usually more to the story beside “he failed”.
I think where Apple is getting a black eye is with making large quantity orders, for which they’ll “help” the supplier to grow their capacity tenfold … and if the supplier can’t cope with that growth, Apple walks away & leaves them with the mess (bankruptcy).
It has already happened enough times that if Apple were to ask for bids with delivery quantities way beyond my current capacity, level of risk comfort, etc, I’d be doubly cautious of taking them on as a customer. First & foremost is Apple’s unwillingness to be a partner who shares risks. Second, there’s how Apple’s tendency to also move the goalposts.
If they don’t like my self-interest based terms, they can choose to buy out the whole company (we all have a price) and then they’ll very clearly “own” whatever messes they cause.
“Americans love treating people like shit but it doesn’t go down well in civilised countries.”
Well, little turds like you don’t deserve anything else.
So, exactly how was this company “stupid”, as MDN states?
By not taking Apple’s offer in the spring of 2016.
Not getting for other clients. It’s poorly run business that has the majority of its business tied to one customer.