“Apple has been quietly working behind the scenes to create its own GPU,” Fudzilla reports.

“Rome hasn’t been built in a day and it sure takes at least a few years to create a fully functional mobile GPU,” Fudzilla reports. “This is why Apple has been working under extreme secrecy for a few years, according to Fudzilla’s Deep Throats in the graphics industry… Apple is making its GPU to cut the cord from Imagination Technologies a company that makes its IP (Intellectual Property) for the GPU.”

“Having its own GPU would help Apple to compete better in the phone and tablet market. Of course it is unlikely to drop any price, it will just mean its huge margins will get bigger,” Fudzilla reports. “We would expect to see Apple SoC with a custom CPU and custom in house GPU sooner rather than later. One more thing, we are quite sure that Apple is not developing its in house LTE / 4G modem, it has already given the work to Intel for the future iPhone.”

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MacDailyNews Take: Healthy margins means innovative, best-in-class products.