Due to the rupture of relations with Apple Imagination Technologies, the company can become unprofitable in 2019
As you know, Apple has decided to abandon the graphics processors Imagination Technologies GPU in favor of its own design. While Apple’s GPU is unknown, but if the smartphones, which will appear in the current year, will use the new graphics processors of the copertina, this means that the development of one started long ago.
But, despite the fact that the partnership between Apple and Imagination Technologies allegedly has been terminated, that doesn’t mean copertina already stopped to pay our former partner royalties. They will come at the expense of Imagination Technologies as long as Apple will be releasing the system on a chip with a PowerVR GPU. However, every month the rate will decrease, as older models of smartphones and tablets will be less.
According to analysts UBS, to pay royalties to Apple will stop after about two years, then Imagination Technologies will become unprofitable. At least if by that time you will not find major new partners or will not rebuild their business. Suffice it to say that once the news about the termination of the relationship of Imagination Technologies share price collapsed by 67%.
, Imagination Technologies