In April, it was reported that Apple had informed Imagination Technologies, a graphics chip technology company, that it would give up using all the latter technologies within two years, including patents, intellectual property rights, confidential information and so on.
Imagination Technologies later confirmed that Apple was "developing an independent graphics processor to control its own products and reduce its dependence on Imagination Technologies in the future". It is reported that the patent fees from Apple account for about half of the company's total revenue.
After the news came out, the company's share price fell by nearly 70% that day, and its market value evaporated by two-thirds.
By the end of April, the company's operating profit was 7.8 million pounds, compared with 26.8 million pounds in the same period last year. However, after Imagination Technologies was abandoned by Apple, the "worst day" is not over yet. Imagination Technologies announced last month that it would seek to sell the company.
It is said that Apple's decision caused a dispute between the two companies, and Imagination Technologies said that Apple's new graphics chip may have infringed its patent.