When Imagination Technologies announced back in April that Apple would cease to use its graphics technology, choosing instead to develop its own, it wiped a massive 64% off of the company’s stock. Imagination accused Apple of only informing the company of its decision at the end of March, not giving the GPU maker enough time to adjust its business.
However, in a statement to Bloomberg today, Apple said it is “disappointed in their response, which has been inaccurate and misleading.” In addition, the iPhone maker claimed that it warned Imagination in February that their relationship would be ending and that it would stop making any royalty payments after 2018.
“We began working with Imagination in 2007 and stopped accepting new IP from them in 2015. After lengthy discussions, we advised them on February 9 that we expected to wind down our licensing agreement since we need unique and differentiating IP for our products. We valued our past relationship and wanted to give them as much notice as possible to adapt their future plans."
Imagination has questioned whether Apple can develop new graphics technology without infringing on its intellectual property, and is preparing for a potential legal challenge. In addition, due to its ever-shrinking market cap, the company has recently put itself up for sale. Apple owns a stake in Imagination, but is unlikely to make an offer, according to a source familiar with the matter.
Source: Bloomberg