Imagination Tech shares plunge 70 percent after Apple ditches firm
Imagination Technologies ( IMG.L ) has been told by Apple ( AAPL.O ), its biggest customer, that the maker of iPhones, iPads and Apple Watches is to stop using its graphics technology in its new products, sending shares in the company crashing by more than 70 percent on Monday. Imagination said Apple, which accounts for about half its revenue, had notified the British firm it was developing its own graphics chips and would no longer use Imagination's processing designs in 15 months to two years time. "The biggest risk to Imagination's business model was realized this morning," analysts at Investec said. "The loss of this revenue stream will have a material impact on the financials of the company." The technology company, which was founded in 1985 and listed in 1994, has licensed its processing designs to Apple from the time of the first iPod and receives a small royalty on every device using its graphics. Imagination said i...