May 4, 2017

Imagination to sell core chip divisions after losing Apple

Imagination Technologies is putting up for sale two of its three core businesses, following last month's decision by Apple, its biggest customer, to stop using the UK chip designer's technology in new products. The two divisions accounted for £21m in revenues when Imagination last reported results - about 29 per cent of total revenues in the six months to October 31. Imagination said it would focus on PowerVR, the graphics chip and software that makes up roughly two-thirds of the company's revenues and is used in the iPhone and several other smartphones and tablets. Imagination said on Thursday it had launched a formal dispute process, after being "Unable to make satisfactory progress with Apple to date" regarding finding alternative commercial arrangements for the current licence and royalty agreements. Apple accounts for roughly half of Imagination's annual revenues and is one of its largest shareholders, with an 8.1 per cent stake in the company.

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