Apple Supplier Learns Downside of Living at Juggernaut’s Mercy
- Stock of longtime supplier Imagination Technologies plunges
- Apple developing new technology to replace Imagination
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Inside every iPhone and iPad are dozens of small components made by suppliers whose businesses are tied to Apple Inc. As Imagination Technologies Group Plc has now learned, it’s lucrative to be a favorite Apple supplier -- until you’re not.
Apple notified Imagination that it will no longer be using the British company’s graphics technology within the next two years. The news Monday sent Imagination’s shares down as much as 72 percent. Apple is Imagination’s largest customer, providing just over half its revenue.