As Apple is winding down its supply deal with UK-based GPU designer Imagination Technologies over the next two years, a new report alleges that the Cupertino firm is about to slash payments to Imagination to just one-third of its current royalty rate.
Reuters cited UBS analysts as predicting that Imagination could very easily become a loss-making company by fiscal 2019 without any Apple royalty contributions. The British GPU designer may even have to axe jobs and consider other potential cost-cutting moves in order to weather the storm ahead.