Apple is making its own GPU to cut the cord from Imagination Technologies and has been secretly developing its own GPU in-house for a few years now. That's what a sketchy rumor published Thursday by Fudzilla contends, citing sources in the graphics industry.
An in-house-designed GPU would let Apple reduce the cost of its own mobile chipsets further. More importantly, such a move would help it advance the iPhone and iPad's graphics capabilities beyond what Imagination's designs (that Apple licenses) permit.
For end users, this should result in an even smoother iOS and flashier graphics in games (the overhyped term “console-quality” comes to mind) with more realistic special effects.