Apple has given the Imagination Tech notice that it will stop using Imagination Technologies graphics technology ’GPU’ tech in the Apple products with in two years in favor of its own custom architecture.

Today’s announcement dropped down the IMG stock by 70%. This is a major blow to the British company, which could lose half of its revenue.  Up to now, Apple’s custom silicon –on-a –chip (A10 Fusion, A9, A8 and others) was heavily depended on GPU designs from Imagination Technologies for their performance tasks. 

Apple had been paying a royalty for every iPhone and iPad or any other products sold, that used the Imagination Tech product on.  According to a report “Apple told to British based company Imagination technologies, that Apple is working on its own custom graphics architecture to control more of the core technology. So Apple may be using a custom GPU stack in the Apple A 12 Chip. Where this might be good news with more gain for Apple but it shocked Imagination Tech investors and left them with concern.

This is going to open a long battle between these to tech giant.  The company disputes the claims and in a statement, the company said:         

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. But Apple declined to provide it.

Imagination said it will negotiate with Apple about possibility of licensing its technology to Apple, but there was no comment from Apple.  Detail information will be posted if it comes available.

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls

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