Imagination Tech Plummets Over 60% After Apple Delivers "Black Swan Moment"
// Silver For The People
What a difference a year makes: not that long after Apple was considering the acquisition of Imagination Technologies, overnight the shares of the UK-based chip designer imploded, crashing as much as 69% after the company announced Apple – its largest customer which accounts for half of its revenue – will stop using its intellectual property in new products, setting the stage for a clash with its biggest customer. In a statement released on Monday, Apple informed Imagination Technologies that it will cease using its graphics technology for new products, including phones, tablets, and watches, in 15 months to 2 years.
Shares of Imagination Technologies fell as low as 76 pence for its biggest-ever intraday slump, and were down a shade over 60% in London trading.
Apple's decision means Imagination Technologies risks losing future royalty payments from Apple. However, Imagination Technologies said it ....