Apple Inc (NASDAQ:AAPL) has revived its working relationship with a U.K. chip known as Imagination Technologies Group Plc. This is a new start to a business deal Apple had ended deliberately years ago. The new license deal has been struck once again with both parties hoping to benefit a great deal from each other.
Anyone that has been following the progress of Imagination Technologies Group Plc knows what happened in 2017. This was the time that Canyon Bridge Capital Partners spend about 500 million pounds to acquire the U.K. chip designer. This amount translates to $663 million. The buying business happens to be a Chinese buyout firm.
The new multi-year license agreement signed by Apple and Canyon Bridge Capital will see Apple start benefiting right away. Apple gains access to Imagination’s intellectual property, and on the other hand, the partner won’t have to pay license fees.
This won’t be the first time for Apple to use GPUs or graphics chips from Imagination Technologies. It has used them before in designing its iPhones and iPads.
Turn of events
It got to a time that Apple decided to take an independent business move that would see it develop its chip designs. This move worked considering that it used the chips for some of its models, including the iPhone X in 2017 and later on the iPad Pro.
Apple also moved ahead to design its graphics processors. It used them in the development of its Apple Watch.
Imagination Technologies wasn’t caught unawares by Apple’s decision. The partner had communicated earlier about its plan to stop using Imagination Technologies’ products within a two-year timeframe.
Back then, Imagination Technologies was a public company. The business leader said it was unfortunate losing Apple as one of its largest customers. Apple’s move came with severe consequences, one of them being a major decline in the company’s stock.
The British company was quick to announce that Apple needed to pay royalties, or else it would have issues getting materials. The American company was supposed to make payments for two of its products, which are the latest generation of iPads and iPhones.
Uncertainty continues surrounding the matter on whether or not Apple has paid those fees.