Is Apple Inc (NASDAQ:AAPL) Gambling Its Future?

Posted by Samantha Donahue September 27, 2013 0 Comment 2205 views

Over the past few months, rumors have been rife that Apple Inc (NASDAQ:AAPL) will be replacing the Imagination Technologies GPU’s in its most recent system-on-chip “A7”. This change is now more imminent than ever and there are several strong indicators that it bound to take place soon.

In house design and development plan

A job posting on the Apple website indicated that the technology giant is all set to venture into in-house designing for its graphics processor for its future products. There is no clarity about the exact time when Apple Inc (NASDAQ:AAPL) will be phasing-out Imagination’s products but the indicators are very strong that Apple will be doing its own GPU designing and Imagination will have to exit from the scene.

The quantity quotient

In the 2012 fiscal year, Apple Inc (NASDAQ:AAPL) sold an astonishing combined 183.3 million units. Of these, 125 million were iPhones and 58.3 million were iPads. The projection is that this volume will only swell over the next few years. The notable fact here is that every one of these devices was outfitted with Imagination’s IP’s. Also, a massive 35% of Imagination Technologies’ sales were attributed to Apple Inc (NASDAQ:AAPL).

A change that will happen

Though the change of GPU is imminent, developing entire generations of technology such as this is not an easy task. And so, the transition is sure to be a staggered one. In most probability, the change will take place in the higher-end models and then trickle down to the lower-end devices. Till the time Imagination keeps ahead of the innovation game than Apple Inc (NASDAQ:AAPL)’s internal teams can, its revenues are not going to get as badly singed as is being projected.

In Thursday’s trading, Apple Inc (NASDAQ:AAPL) stock rose by 0.97%. The shares opened at a price of $486.00, climbed to an intraday high of $488.56 and dropped to a close of $486.22.

About Samantha Donahue

Samantha Donahue is a digital fellow with GDP insider. Samantha earned a Bachelor's degree in Government from Cornell University and later his Master's degree in Journalism from Columbia University. She has also received numerous awards from the Associated Press, Society of Professional Journalists, and other media organizations for many of her exclusive stories. Samantha thrives reporting on breaking news and as a general assignments news reporter.

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