Imagination Tech shares plunge as Apple abandons it

A company that makes graphics processing chips for the iPhone saw its stock crash 69 percent after Apple announced it would no longer be using its hardware. Mia Womersley reports.

(Reuters) – Beware changes of mind at Apple.

That’s the painful lesson a U.K. chipmaker is learning Monday (March 3).

Shares in Imagination Technologies plunging a whopping 69 percent, to a seven year low after Apple announced it will no longer use the company’s graphics chips in the iPhone… within two years.

Apple holds a eight percent stake in the British company, which also makes chips for the iPad and Apple Watch.

Imagination says Apple was its biggest customer, earning just over $75 million last year off royalties and licensing fees from the company.

But now the company’s executives believe Apple’s developing its own graphics hardware instead.

In a statement Imagination said they doubted Apple could make their own graphics hardware without violating their patents.