Imagination Technologies Might Have Posted a Profit in latest Earnings Call, But Lashes Out at Apple for Leaving its GPU Tech
Apple’s only GPU designer and manufacturer Imagination Technologies has been struck with a positive surprise of returning to profitability on paper, but during the company’s earnings call, the Chief Executive did not hold back on lashing out on Apple’s decision to stop using its partner’s technology. In addition, the executive claims that the tech giant will not be able to successfully develop its own graphics processor without breaching copyright infringement.
Imagination Technologies CEO Andrew Heath States That Apple’s Decision Forced the Former to ‘Change Our Course’ Completely
The earnings call be regarded as more of a lashing session from the company’s CEO, and in the report, he continues to state that it would cease licensing and paying for, his company's GPU technology for Apple multiple times. Furthermore, he claims that the California-based organization will not be able to develop its custom GPU without nailing itself to the intellectual property cross, all the while claiming that Apple’s decision to ditch the company’s GPU technology forced it to take a different course of action; an action towards recovery.
“Apple made an unsubstantiated claim, which obliged us to inform the markets, leading to a significant decrease in our share price. The claim has led us to invoke a contractual dispute resolution procedure and has created significant uncertainty with respect to our business, including our employees. We do not believe this to be acceptable business practice nor in line with Apple's own ethics statements regarding suppliers.”
During April, it was reported that Apple would be working on its own processor in order to command greater control on its devices, leaving Imagination Technologies behind as a result of the move. The PowerVR GPU manufacturer’s shares plunged in value by more than 60 percent in the immediate wake of the announcement. Though there have been reports that Apple intended to acquire Imagination Technologies last year, a consensus could not be reached, meaning the negotiations came to an impasse, which would eventually haunt the UK-based firm.
Imagination’s return to profitability is based on continuing operations, but remember that it is continuing to bear the blows due to discontinued operations, and after putting all of its eggs in one basket which clearly comes in the form of Apple, it looks like the future is looking very bleak for the GPU maker.
News Source: Investegate
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