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- Trump donates first-quarter salary to National Park Service
- Hundreds of protesters greet Devin Nunes upon returning to home district in California
- Russia probes 'act of terror' after metro blast kills 10
- College student dies after choking at pancake-eating contest
- The Latest: Judiciary panel votes 11-9 in favor of Gorsuch
- What happens when a small Apple supplier loses its contract
- Somali pirates seize Indian ship, 11 crew members
- Ruling party in Armenia leads parliamentary vote
- The Royal Gifts: 65 years of presents given to Britain’s Queen Elizabeth II
- Lenin Moreno Wins Ecuador Presidential Election
- SitRep: Trump Willing To Go It Alone On North Korea; Egypt Reset; White House Favors Arms Sales Over Human Rights
- Atlanta Overpass Collapse and Fire Sparks Traffic Nightmare
- No need to lose tempers over Gibraltar: Spain foreign minister
- The 66 Most Delish Ways To Eat Peanut Butter
- Top Senate Democrat says unlikely Trump court pick can clear procedural hurdle
- 2017 Porsche 911 Carrera 4S Targa Automatic
- Blast on Russian subway kills 10, injures 50; 2nd bomb found
- Putin, friend or foe? Russia looms over French election
- Full Clint Watts: Trump Campaign 'Picked up On' Kremlin Lines
- St. Petersburg metro blast: At least 10 dead in Russian subway station explosion
- Tesla tops quarterly sales forecast
- Wife Of Teacher Accused Of Abducting Student Files For Divorce
- Bit by bit, Trump methodically undoing Obama policies
- EU sees no future for Assad in Syria: foreign ministers
- 11 Indian sailors on small boat hijacked off Somali coast
Trump donates first-quarter salary to National Park Service Posted: 03 Apr 2017 01:52 PM PDT
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Hundreds of protesters greet Devin Nunes upon returning to home district in California Posted: 03 Apr 2017 01:16 PM PDT
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Russia probes 'act of terror' after metro blast kills 10 Posted: 03 Apr 2017 12:58 PM PDT
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College student dies after choking at pancake-eating contest Posted: 03 Apr 2017 12:43 PM PDT
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The Latest: Judiciary panel votes 11-9 in favor of Gorsuch Posted: 03 Apr 2017 12:22 PM PDT
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What happens when a small Apple supplier loses its contract Posted: 03 Apr 2017 12:05 PM PDT Until Monday morning, Imagination Technologies was a successful processor technology company going through a bit of a rough patch. The company designed some of the underlying architecture of chips that Apple uses in its iPhone range, and as a result, it earns royalty money from every iPhone sold. It's a solid business model, so despite a downturn in iPhone 6s sales causing a cash shortage, Imagination was doing well. Emphasis on the "was."
Early this morning, Imagination dropped a bombshell on its investors: Apple is planning a fundamental rebuild of the GPU used in the iPhone, to increase control over the design and to remove the need to pay Imagination royalties. As you can imagine, the result has been ruinous for Imagination. In the hours since the press release dropped, Imagination Technologies stock dropped by 65 percent, as investors bail out hard. It's a hard result for Imagination: though Apple's revenue does make up about half of Imagination's revenue in total, the stock has dropped by more than half. The revenue for Apple relates to patents and designs that Imagination already owns, so the marginal costs required to earn that cash from Apple are minimal. Without the promise of future cheap revenue streams from Apple, Imagination's core business is left looking a lot more tenuous. But before Imagination's stock fully craters, it's worth looking at the press release the company put out in greater detail. Imagination points out that it will be difficult to Apple to completely abandon the design and architecture that it pays Imagination for. Redesigning a new GPU may well reduce Apple's reliance on Imagination's design, but cutting out the company's intellectual property altogether will be difficult. In a statement, Imagination described its reaction to Apple's news:
That last line in particular raises the specter that this is just a bargaining move from Apple: announce it plans to sever ties entirely, watch Imagination's investors freak out, and then offer the company a lifeline of reduced royalty payments. This posting includes an audio/video/photo media file: Download Now |
Somali pirates seize Indian ship, 11 crew members Posted: 03 Apr 2017 11:49 AM PDT
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Ruling party in Armenia leads parliamentary vote Posted: 03 Apr 2017 11:35 AM PDT
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The Royal Gifts: 65 years of presents given to Britain’s Queen Elizabeth II Posted: 03 Apr 2017 11:20 AM PDT
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Lenin Moreno Wins Ecuador Presidential Election Posted: 03 Apr 2017 10:59 AM PDT
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Posted: 03 Apr 2017 10:43 AM PDT
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Atlanta Overpass Collapse and Fire Sparks Traffic Nightmare Posted: 03 Apr 2017 10:26 AM PDT
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No need to lose tempers over Gibraltar: Spain foreign minister Posted: 03 Apr 2017 10:09 AM PDT
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The 66 Most Delish Ways To Eat Peanut Butter Posted: 03 Apr 2017 09:49 AM PDT |
Top Senate Democrat says unlikely Trump court pick can clear procedural hurdle Posted: 03 Apr 2017 09:29 AM PDT
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2017 Porsche 911 Carrera 4S Targa Automatic Posted: 03 Apr 2017 09:12 AM PDT
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Blast on Russian subway kills 10, injures 50; 2nd bomb found Posted: 03 Apr 2017 08:36 AM PDT
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Putin, friend or foe? Russia looms over French election Posted: 03 Apr 2017 08:20 AM PDT
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Full Clint Watts: Trump Campaign 'Picked up On' Kremlin Lines Posted: 03 Apr 2017 07:45 AM PDT
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St. Petersburg metro blast: At least 10 dead in Russian subway station explosion Posted: 03 Apr 2017 07:28 AM PDT
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Tesla tops quarterly sales forecast Posted: 03 Apr 2017 07:11 AM PDT
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Wife Of Teacher Accused Of Abducting Student Files For Divorce Posted: 03 Apr 2017 06:50 AM PDT
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Bit by bit, Trump methodically undoing Obama policies Posted: 03 Apr 2017 06:33 AM PDT
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EU sees no future for Assad in Syria: foreign ministers Posted: 03 Apr 2017 05:59 AM PDT
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11 Indian sailors on small boat hijacked off Somali coast Posted: 03 Apr 2017 05:43 AM PDT
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