Imagination Technologies' Shares Shattered By Apple's Decision

The shock announcement by Apple that it was planning sever the links with Imagination Technology, the British company whose patents Apple has been relying on in connection with the graphics in Apple devices, has caused Imagination's shares to plummet by 70%.

Imagination relies on Apple for at least half of its license and royalty business and following Apple's statement that it will no longer use Imagination's intellectual property in any new products in two years' time coupled with the fact that Apple has not only been developing a "separate independent graphics design in order to control its products" it has allegedly been poaching Imagination staff over the past two years, all of which leaves Imagination in an invidious position with a £500 million hole in its finances.