Apple's decision that ended Imagination Technologies

After losing 70% of its value last April, the British company Imagination Technologies has hung the “for sale” sign.

As the title of this post, many will think that its end is due to a decision of another company, Apple, however this has not been more than the trigger. The real reason for this difficult decision comes from much further: an excessive dependency.

Imagination Technologies sells to the highest bidder

I recognize that my knowledge about economics and investments is limited, however, one of the maxims of every good investor is that you have to diversify your capital. And this is precisely what Imagination Technologies has not known or been unable to do, and that has ultimately led to it going on sale for less than a third of the value it was a few months ago.

Last April, Apple CEO Tim Cook informed Imagination Technologies that, within a maximum period of two years, would stop making use of its technology in chips including the iPad, iPhone and Apple Watch. The apple company wants to be more independent with respect to its suppliers, and this involves manufacturing and using its own chips.

Apple's decision could have been little more than a stumbling block for Imagination Technologies' businesses, were it not for more than half of its income comes from Apple since the two companies began to collaborate in 2001, with the launch of the original iPod.

Thus, once Apple's unilateral decision is known, Imagination Technologies lost 70% of its value on the stock market, and now the board of directors has made the difficult decision to put the company up for sale, an appetizing dish in which companies such as MediaTek, Qualcomm or Intel, among others, could already be interested.

There is the paradox that precisely the greater independence desired by Apple has collided with the excessive reliance on Imagination Technologies, which has finally led her almost to ruin.


Be the first to comment

Leave a Comment

Your email address will not be published. Required fields are marked with *

*

*

  1. Responsible for the data: Miguel Ángel Gatón
  2. Purpose of the data: Control SPAM, comment management.
  3. Legitimation: Your consent
  4. Communication of the data: The data will not be communicated to third parties except by legal obligation.
  5. Data storage: Database hosted by Occentus Networks (EU)
  6. Rights: At any time you can limit, recover and delete your information.