Apple To Develop Its Own Graphics Chips; UK Partner's Stock Plummets

Apple To Develop Its Own Graphics Chips; UK Partner's Stock Plummets

The news represents a hammer blow to Imagination's business, with the chip maker relying on Apple for around half its annual revenue.

The statement added: "Apple has used Imagination's technology and intellectual property for many years".

Up until now, Apple has been licensing the PowerVR graphics processors to power up the iPhone and iPad's gaming capabilities.

Once Apple stops using Imagination Technologies' own GPU designs, Apple will begin implementing its own in-house GPUs.

"[Its] technology has formed the basis of graphics processor units (GPU) in iPhones, iPads, iPods, TVs and watches", says The Guardian.

Imagination said Monday it doubted that Apple could go it alone without violating its patents, intellectual property and confidential information. The news was announced Monday by Imaginations Technologies, the company who now makes the graphic chips for the iPhone.

Making its own GPUs will allow the company to have much more control over graphical power, and considering Apple has always been rumoured to be working on augmented reality for its iPhone handsets, it could mean we'll see some sort of AR tech on next year's phone.

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You can see the full statement from Imagination Technologies at the link below.

But it also raises two key questions: could it signal another takeover play for the United Kingdom chip designer or merely ignite yet another patent spat for the world's biggest technology company?

Imagination has begun talks with Apple as it gears up for a battle over its intellectual property rights.

What this means is that Imagination will be putting Apple's allegedly new GPU under the microscope to ensure it doesn't infringe on its patents.

Once considered one of the brightest prospects in United Kingdom tech - Imagination Technologies has been dealt a major blow by Apple.

According to the Hertfordshire-based company, they are in discussions with Apple to agree alternative arrangements for licences and royalties. In 2016, Apple paid almost £60.7 million (about $75.8 million) in royalties to the British company, which reported total sales of £120 million (about $150 million) for the 12-month period.

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