Apple has opened a new office on the doorstep of the British microchip company thereby increasing its stakes in the bitter stand-off with the Imagination Technologies.
The new lease
The tech giant is said to have rented a 22,500 square foot in St Albans which is literally a stone’s throw from Imagination Technologies’ headquarters. Apple intends to make use of the new office in designing its own graphics technologies in the process ditching Imagination. This has created fears that it may end up poaching the most talented staff from the British company.
The fate of Imagination
In April, Imagination was thrown in turmoil after Apple declared its intention to start producing its own graphics technology which powers the iPhone. Apple accounts for about half of the listed companies’ revenue in London.
This means that Imagination which was once a leading company in the UK will be struggling to survive. The company’s shares slumped by 62% after the news became public. Last month, the company even put itself up for sale.
The tag of war
The two companies are now engaged publicly in a word of war over the issue. Imagination is challenged Apple’s allegation in being able to design its own technology without affecting Imagination’s technology. The company is insisting that Apple should continue paying royalties.
Apple on the other hand has denied pulling the rug out from under Imagination claiming the Imagination was well aware for a long time that the relationship was due to wind down. It went further to label Imagination’s conduct as “inaccurate and misleading”.
Apple has engaged a couple of employees from Imagination recently which include John Metcalfe the former chief operation officer at Imagination. Many other jobs posted on the Apple’s website are seeking for experts in graphics hardware to be placed in South Hertfordshire.
Technology from Imagination forms the basis of graphics chip found in every Apple Watch, iPad and iPhone. Apple however, is seeking to develop its very own with the aim of taking greater control of the components of its products.
According to analysts Imagination may not survive without royalties from Apple and potential bidders include Qualcomm, Intel as well as ARM Holdings.