Imagination Technologies will resolve its licensing issues with Apple using a dispute resolution procedure

Imagination Technologies will resolve its licensing issues with Apple using a dispute resolution procedure
The negotiations for a new licensing deal between Imagination Technologies and its biggest customer Apple have obviously reached a dead end. As a result of this failed attempt to resolve the latest controversy with Apple, related to intellectual property, Imagination starts a dispute resolution procedure, Reuters reports.

Imagination Technologies didn’t actually say what the dispute was about, but, considering the latest news from the companies, we can assume that it concerns the future use of their GPU designs by Apple, the intellectual property related to them and the financial details involved. Earlier, the British GPU maker expressed doubt if Apple could actually produce a graphics chip without infringing its intellectual property, so the dispute between the parties was almost inevitable. That’s why, the latest development of the situation is not a big surprise, especially after Imagination’s attempts to resolve the situation through informal means have failed.

Clues about possible disagreement between them emerged last month, when Apple announced plans to terminate the relationship with its GPU supplier by 2019. The news that the Californian tech giant works on an “independent graphics design” sent Imagination’s shares 70% down and, about two weeks later, the Swedish banking conglomerate UBS predicted that Apple will pay only 10 cents per iPhone to Imagination Technologies by 2019, reducing royalty payments per iPhone by more than 60%. As analysts pointed out then, this puts the future of the GPU chips manufacturer in serious danger, since about the half of its current business depends on the contracts with the Cupertino company.

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14 Comments

1. trojan_horse

Posts: 5868; Member since: May 06, 2016

"As analysts pointed out then, this puts the future of the GPU chips manufacturer in serious danger, since about the half of its current business depends on the contracts with the Cupertino company." That's the disadvantage of having all eggs in one basket. Once Imagination Technologies' basket drops in 2019, it will lose the majority of it's eggs. Too bad. But they could jump ship and switch to Samsung, since I've heard Samsung is working on it's own custom GPU and will ditch the Mali GPU too in future.

6. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Not necessarily, if they were smart, they would start branching out right now. There is serious stagnation in the chip market with QC dominating most of the Android space. Nvidia are douchebags and usually do not work well with others. Mediatek, Huawei, Samsung, LG and anyone else with their own custom CPUs would be more than willing to incorporate a top of the line GPU, that isn't an ARM reference Mali, and cutting edge like Imagination's PowerVR. Samsung even had them for a while but stopped using them probably because of some back room push from Apple on Imagination. That combination will finally put QC to some real competition. Exciting times are possible now.

7. marorun

Posts: 5029; Member since: Mar 30, 2015

Agreed. Apple need to stop been a bully they doing similar crap to QC as well.

14. renz4

Posts: 319; Member since: Aug 10, 2013

Many people don't like nvidia but that also the reason why they are very successful as a company. first and foremost nvidia is very serious in protecting their interest. they are not the type that will always say "yes" for whatever thing requested by their partners and end up getting "bullied" like happen with Imagination right now with Apple.

2. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

As always. Doing business with Apple will kill your company. They steal all your knowledge, copy your ideas and run your bankrupt.....

3. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

Won't be surprised to see apple later make an offer to buy them up once they're down in value, just like they did with the company that was to produce Sapphire displays for them.

8. Finalflash

Posts: 4063; Member since: Jul 23, 2013

GT was a one trick pony with just promises and no real tech delivery. Imagination is an actual mobile GPU powerhouse. They have tech, IP and actual ability. It won't just be a cheap buy for Apple if they play their cards right and branch out to other manufacturers now. Anyone with a custom CPU will be more than happy to have them on their SOC because the primary reason custom CPUs haven't taken off in the Android space is because GPUs are infinitely more complex and no one else has yet managed to catch up. Even Apple will have a hard time topping current GPUs with their own custom variant just as Intel also found out the hard way.

12. lyndon420

Posts: 6793; Member since: Jul 11, 2012

Just like microsoft did to Nokia.

9. AlikMalix unregistered

RoboticEngi, you probably don't know this, but regardless how relationship with Apple ends - any company that did business or contracted with Apple has seen the best years of their business. EVERYONE wants to do business for or with Apple - it's where the money and consistency comes from. Apple will design and engineer everything for you including manufacturing process, Apple will also invest into improving your factories to facilitate their manufacturing. Samsung even lowered their prices to win apples contracts in the past. Don't be a troll - this is the real picture.

4. XperiaFanZone

Posts: 2277; Member since: Sep 21, 2012

They should have collaborated with ARM holdings before the Japanese took over

5. PhoneCritic

Posts: 1354; Member since: Oct 05, 2011

Does Apple ( management team) make a practice of doing these type of thing? it seems like they are wanting to infuriate the whole industry. They really must be careful because all you need is the industry as a whole to black list Apple and then its good buy to all those profits. Could you imagine if Samsung express that no manufacturing capacity is left for displays, QC expressed that says that it will no longer design compatible modes for iOS, ARM decide that its' design will shift and no longer be easily compatible with Apple oS and Imagination also taking such a stance and so on and so on. Yes Apple could do everything without these vendors it self - but that would involve huge resources and time. Apple definitely has the resources but this would open up another can of worms - Monopoly and the US does not take to kind to Monopolies for to long.

10. AlikMalix unregistered

You need to learn how these corporate relationships work. Samsung wants apples business probably even more than it wants to sell you a Galaxy phone.

11. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

You are really a stuck up in your own world delusional human. Samsung does not need Apple. As many bad things as Apple has done to Samsung, every time Apple.went low, Samsung went high. It's Apple who keeps going back to.Samsung, not the other way around. Samsung already got whatnot needed from Apple. When Apple sued Samsung for no reason, it showed everyone Apple was afraid of Samsung. Samsung has come out victorious because of the attention Apple gave them. Samsung has a diverse product line. If Samsung lost Apple, it just means they can concentrate on their own products. Sure any company wants to make millions off Apple, but Samsung is supplying them with something no one else has and that's reload yield and a fair cost. No.one can match Samsung. When Samsung wasn't making chips for Apple, Qualcomm stepped in. ALL THESE company's are regret g do I g any bsui was with Apple. Samsung doesn't need Apple. All Samsung has to do.is day no and Apple is in trouble and Samsung will gain the be edit if less iPho we and selling more Galaxies. But Samsung sees the bigger picture..see it shows Samsung is the better company when th3 slave Apple comes back to the king and asks for mercy and his blessing. It's makes Samsung proud. Samsung makes more money with his own stuff selling than it makes from Apple.

13. mentalerror

Posts: 15; Member since: May 19, 2016

maybe its a plan for apple to let imagination tech go bankrupt within 2 years by boldly declaring that they will no longer support them and pretending to develop their own gpu. then after declaring bankruptcy, apple can acquire their patent for a cheap price. its a win win for apple

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