iPhone GPU Maker Imagination Technologies Puts Itself Up for Sale

1 minute read
| News

Imagination Technologies took a turn for the worse when it announced Apple wouldn’t be using its graphics technology in future iPhones, and now the company has put itself up for sale. Analysts are seeing that as a sign IT’s management knows they won’t recover from losing their biggest client and the huge stock drop that followed the announcement.

Imagination Technologies for sale

Imagination Technologies up for sale after Apple drops mobile GPU partnership

Apple has been using IT’s GPUs in the iPhone and iPad, and makes up the majority of the company’s revenue. Apples decision to phase out Imagination Technologies GPUs over the next couple years in favor of its own custom designed chips threw the company’s future in question even as it entered into mediation.

IT’s value dropped 70% and hasn’t shown much sign of recovery. Two of its MIPs embedded technology and Ensigma mobile tech divisions have already gone up for sale and now the company as a whole is available for purchase.

Offers to buy were coming before IT officially put itself on the auction block, according to Reuters. CEVA, Intel, Mediatek, Qualcomm, and even Apple are seen as potential buyers along with companies out of China.

Moving forward with a formal sale makes sense because Imagination Technologies value has dropped so low and bidders are already lining up. Taking advantage of that interest while it’s still there is a smart move and at this point is likely the only way to salvage what’s left of the company.

When business with Apple was good, it was really good. With Apple now making its own mobile device GPUs, however, Imagination Technologies is finding recovering from losing a client that big is pretty hard to do.

3 Comments Add a comment

  1. geoduck

    IT’s value dropped 70% and hasn’t shown much sign of recovery.

    That means Imagination’s Draggin’ because the stock’s Radioactive.
    LOL

  2. Hagen

    I’m a bit confused by this. Apple announces they’re planning to move off of IT’s chips, and the company implodes? I could very much see this as affecting their business once that transition happens, but it seems far too soon for it to have an immediate effect on IT’s sales or income. A sale to someone else essentially insures Apple’s drop of their products — if not also suggesting Apple was prescient in the move — and makes me wonder if there will be any supply or licensing issues before Apple’s own efforts are ready.

  3. TitanTiger

    Seems like it could be a move to try and pressure Apple a bit to buy them, even at a fraction of what they might have a year or two before. If the sale happened quickly, Apple certainly doesn’t want to be in a position of supply constraint this fall and Christmas by it going to someone else. And for Imagination, it gets them some recompense for their feelings that Apple may have stolen their ideas to make their own chip.

Add a Comment

Log in to comment (TMO, Twitter, Facebook) or Register for a TMO Account