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Up until now, Apple has been licensing the PowerVR graphics processors to power up the iPhone and iPad’s gaming capabilities. But it looks like the Cupertino company will no longer be relying on Imagination Technologies for mobile GPUs, and is “working on a separate, independent graphics design in order to control its products and will be reducing its future reliance on Imagination’s technology”.
While this may be a big impact on Imagination (about half of their revenue was from Apple), Apple currently holds about 8% of the graphics company. About a year ago, Apple had talks with Imagination about a possible takeover, in which the graphics company went against it.
“Apple has 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.
Further, Imagination believes that it would be extremely challenging to design a brand new GPU architecture from basics without infringing its intellectual property rights, accordingly Imagination does not accept Apple’s assertions.”
It will not be surprising to see Apple create and develop their own GPUs for their smartphones since they already do create their own processors for the iPhone and iPad.