At present, Apple’s existing iPhone, iPad, and other products use chips manufactured by the British company Imagination Tech. In April this year, Apple said publicly that tit will be making its own chips.
Apple Imagination Tech Row
When Apple made this remark, the shares of their supplier Imagination tech fell. Since then, the shares have dropped by 80%. The company is reluctant to put itself for sale. Imagination tech says that Apple’s approach was sick. Responding to these remarks by the Imagination tech, Apple said that its supplier already knew two years ago that Apple is planning to self-research GPU chips, and that in February this year, Apple would like to end the two authorized cooperation agreements. Apple’s statement and Imagination Tech’s statement is conflicting and contradictory. Imagination CEO Andrew Heath said Apple did not notify the company until the end of March that it would no longer use the latter’s technology in new products released in 2018 or early 2019.
Apple is challenging the timeline right now. According to Apple, Imagination tech was informed about Apple’s decision on Feb 9. According to Imagination Tech, it was notified at the end of March. Imagination informed it shareholder about this on April 3, which made its shares drop by more than 70%. Imagination Tech has now been forced by the situation to put itself up for sale. Apple claims that Imagination Tech withdrew this information from shareholders for a long time. If found true, this could spell trouble for Imagination Tech. Andrew Heath has said that Apple cannot really replace Imagination’s technology without using some of its patents that need royalties.