In Monday’s announcement, Imagination said: “Apple has used Imagination’s technology and intellectual property for many years.
“It has formed the basis of graphics processor units (GPUs) in Apple’s phones, tablets, iPods, TVs and watches.
“Apple has asserted that it has been working on a separate, independent graphics design in order to control its products and will be reducing its future reliance on Imagination’s technology.”
The group added: “Apple had not presented any evidence to substantiate its assertion that it will no longer require Imagination’s technology, without violating Imagination’s patents, intellectual property and confidential information.
“This evidence has been requested by Imagination but Apple has declined to provide it.”
Now, Imagination firmly believes Apple would find it “extremely challenging” to design a brand new GPU architecture from basics without infringing its intellectual property rights” and as such does not accept Apple’s assertions.
But seriously? Would you take on Apple?
The change in tact from the ‘iMasters’ on Monday saw Imagination Technologies – the UK-based chip manufacturer – plummet more than 60% in a day as Apple announced they would be changing supplier in 15 months to two years’ time reneged all expected royalty payments.
The group’s share price fell 165p to 103p, valuing the company at about £250m, down from around £765m prior to Monday morning’s announcement.
IT has been the stellar performer of the past three months – almost doubling the return of the All Companies World Index, according to MSCI with 13.1% versus the ACWI’s 7%.
Further, it has not had a negative period across any of its regions in the past year.
And the sector is still dominated by Apple, at 11.4% and contributing more than 55.6bps in just one month.
