Apple Ditched Imagination Technologies to Create Its Own GPU for iPhones, iPad

When the iPhone was first introduced by the late Steve Jobs in 2007, he quoted Alan Kay's saying "People who are really serious about software should make their own hardware." Today, after 10 years of the historical event, Apple is holding true to the statement by deciding that the company will create its own graphics components for the iPhone.

The news about Apple's decision was first revealed on Monday by long-time partner Imagination Technologies, who has been supplying the GPU chips for the US tech company since 2008. According to Imagination Technologies, Apple has decided to cease the use of the intellectual property for GPU chips within 15 to 24 months. The revelation has caused a massive shares plunge as far as 72%. Half of Imagination Technologies annual revenue comes directly from Apple, as it owns and licenses the intellectual property which powers the graphic for Apple's devices such as the iPhones, iPad, iPods, Apple TV as well as Apple Watches.

There is no official response from Apple, yet, about the statement released by Imagination Technologies. On the positive side, the news may be seen exciting for many Apple aficionados for the possibility that Apple will boost the performance of its devices. However, based on the time frame given by Apple, it is highly unlikely that Apple will be using its own GPU for the upcoming iPhone 8.

Last year, Apple has confirmed the rumors about its consideration to buying the UK company. MacRumors also reported that Apple had acquired a handful of skillful engineers which may be the evidence that the company is ready to start the project of creating its very own GPU. Currently, Apple holds 8% stake in Imagination Technologies.  

Imagination Technologies also said that it would be extremely challenging for Apple to create its own GPU without infringing on its intellectual property - hinting that there is a potential patent battle between the two companies in the future. Apple's notification, according to Imagination Technologies, has led them to discuss the potential alternative commercial agreement for the current license and royalty agreement. Both of the companies could reach an agreement soon.