Apple ends contract

Community Forums/Technical Discourse/Apple ends contract

(tu) ENAY(Posted April) [#1]
Never heard of "Imagination Technologies" but man, that must have sucked.

http://www.bbc.com/news/business-39476898


Derron(Posted April) [#2]
> Shares fell 165p to 103p, valuing the company at about 250m - down from about 765m before the announcement was made on Monday morning.


What missed my math teacher to teach me?


PS: the more you concentrate on one contractor the more dependent is your company from this partnership.


Bye
Ron


dawlane(Posted April) [#3]
I think I can see what Apple are trying to do. Ending their contract with Imagination Technologies to devalue or force the company into financial difficulty before making an aggressive take-over.


coffeedotbean(Posted April) [#4]
@ dawlane - apple did that with the company supplying sapphire glass http://www.digitaltrends.com/mobile/apple-sapphire-screen-supplier-gt-advanced-technologies-files-bankruptcy/


degac(Posted April) [#5]
Well, Imagination Tech will sue Apple for a 'sure' infringements in some patent of the GPU 'internally' developed by Apple...
the bad thing in being the 'major' (=unique) supplier for a big firm is the risk to be the 'last one' (or a merge&acquisition)
IT refused in the recent past the acquisition... this time maybe they have no choice, I doubt they can recycle themselves in the android market very fast, even the Chinese smartphone producers start to built their own ARM based CPU: the risk to be bought is very high


John G(Posted April) [#6]
Apple likes to play hardball with "partners"...
Take my low price or else.


Ian Thompson(Posted April) [#7]
ARM is getting slaughtered, first the CPU division Japanese bank buyout, now the GPU division will probably be snapped up by the U.S. Very sad days for the UK tech industry.


AdamStrange(Posted April) [#8]
It's probably related to Nvida's ongoing patent enforcement over PowerVR and Imagination.

Breaking all contact with PowerVR means Apple won't have to pay out later. There are also issues with PowerVR and heat which means Apple had to slow down clock speeds, etc

Making their own GPU make perfect sense considering their cash reserves...


xlsior(Posted April) [#9]
With pretty much any of their chips, Apple uses two separate suppliers -- e.g. half the memory, processors, etc. are made by Samsung, half by someone else, so they aren't depending on a single company and its supply chain.

(Plus it helps them negotiate pricing as well -- they always have somewhere else to go if they don't like where things are heading)


Ian Thompson(Posted April) [#10]
Don't think it's a legit move by Apple for anything other than a hostile takeover. They started to buy up stock(they own 8%) and finally just offered a lump buyout to shareholders that was refused a couple of months back.