Today Imagination announced that Apple would stop using its products in about "15 months to two years time." Shares of Imagination Technologies have plunged by more than 60% in the UK on that news that Apple has confirmed. The loss of Imagination's largest customer will mean the loss of lucrative royalty payments.

Apple has told Imagination that it 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".

Imagination has said that Apple's independent design would be difficult without infringing their patents. Imagination further stated that "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."

Back in March 2016 it was rumored that Apple was in advanced talks to acquire Imagination Technologies which Apple denied. Over the last few years, Apple has hired several former Imagination workers including the former chief operating officer and hardware engineering boss.

In the end, it appears that Imagination's legal team will be waiting for Apple's new GPU product to surface and then strike out with patent infringement lawsuits. Perhaps Apple thinks that it'll be cheaper going that route than to actually buy the company out.

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