Apple is developing a new graphics chip for the iPhone that will see the end of its long-term relationship with Imagination Technologies.
Apple has relied on Imagination for years to provide the iPhone’s GPU. Apple recently informed Imagination that it “will no longer use [Imagination’s] intellectual property in its new products in 15 months to two years time.”
The iPhone is packed with third-party components, but Apple designs the main application processor. Phone performance relies on the CPU and GPU working together closely, so it stands to reason that Apple would also want to control that piece of the iPhone. Imagination, however, doesn’t think Apple can get away so easily.
“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,” said the company in a statement.
Imagination says it requested these details from Apple, but Apple declined to provide them. The two companies have already explored alternative commercial arrangements for the patent licenses and royalties that pertain to Imagination’s technology. Imagination said it won’t stand for its patents to be violated.
Apple hasn’t commented on the matter. Imagination is a U.K.-based firm. Investors punished Imagination’s stock after the company shared the news.
