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.
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.