“At this point, anybody with even a cursory interest in technology stocks has probably heard that Apple recently informed graphics specialist Imagination Technologies that it would no longer need to use its graphics intellectual property in future mobile applications processors,” Ashraf Eassa writes for The Motley Fool.
“Imagination has historically depended heavily on Apple for the bulk of its revenue (just over 50% in fiscal year 2016). However, it’s worth observing that this figure understates just how important Apple was to Imagination’s PowerVR graphics business,” Eassa writes. “In Imagination’s disclosure vis-a-vis Apple, the former said that in fiscal year 2016, PowerVR licensing and royalties from Apple totaled 60.7 million pounds (about $76 million) in revenue… What this means, then, is that Apple made up nearly 70% of Imagination’s PowerVR graphics revenue in the company’s prior fiscal year.”
Eassa writes, “If Imagination can’t work out some sort of serious technology/patent licensing arrangement with Apple, then it is extremely unlikely that the former will be able to continue to fund the development of its PowerVR graphics technology.”
Read more in the full article here.
MacDailyNews Take: As we wrote last week, “Custom hardware married to custom software is something Apple’s would-be rivals simply cannot match. Already, iPhone does far more with less RAM and less power than the Android iPhone knockoffs. The same with iPad vs. fragmandroid tablets. The gulf will only widen.”
SEE ALSO:
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
Primarily Apple is a software company
Primarily, you’re an asss.
Primarily you’re deplorable and ignorant too
Yes, Breeze is all that and more.
No, Services.
Kenny Rogers knew what to do: “Know when to hold em, Know when to fold em … ”
I’ve seen this so many times. Every time someone wanted to buy my business I said “YES.” That was after I said “No” just one time.
In a commodity game, and the smart phone is a commodity at this point, the only advantage for iPhone is arguably speed.
Just like a drag race, Apple gets sales long term by being first as the demands for video/audio/compression, multi-tasking and connected systems expand.
Only speed? Do you have an iPhone? If you do, have you used an Android? Do we REALLY have to drag out all the references about the eco-system integration?
Imagination will be a prime target for Google in order to get the patent portfolio that will be turned on Apple. I wouldn’t be so happy that Apple is ruining a company because of its greed, this could comeback and bite.
Apple could still be a bidder and acquire IT for a substantial discount.