Imagination Tech Plummets Over 60% After Apple Delivers “Black Swan Moment” [feedly]

Imagination Tech Plummets Over 60% After Apple Delivers "Black Swan Moment"
// Silver For The People

zerohedge.com / by Tyler Durden / Apr 3, 2017 7:26 AM

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 ....

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