Apple is already building its own mobile processor for the iPhone and ipad but the company is moving ahead to build its own graphics processors as well. Till now Apple is using PowerVR GPUs from Imagination Technologies. But today, Imagination announced that its longstanding relationship with Apple is coming to an abrupt end. Its also mentioned that Apple will replace the PowerVR GPU with a graphics chip of its own design.
During the initial stage of iPhone development, Apple used various third party components to build and later began to craft more and more of its own silicon. Graphics processors are the one where Apple lacks entire control over them. It also believes that making its own GPU would make company to cut costs on royalties and license agreements from Imagination Technologies.
But Imagination believes it remains highly unlikely that Apple can develop new graphics architecture without infringing on its patents:
Apple has not presented any evidence to substantiate its assertion that it will no longer require Imagination’s technology, without violating Imagination’s patents, intellectual property and confidential information. This evidence has been requested by Imagination but Apple has declined to provide it.
Further, Imagination believes that it would be extremely challenging to design a brand new GPU architecture from basics without infringing its intellectual property rights, accordingly Imagination does not accept Apple’s assertions.
Its a massive blow for Imagination and its stock fell about 50-60% after the announcement.
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