Apple to cut Imagination royalty to a third, says UBS
- Author:Ella Cai
- Release on:2017-04-20
Imagination is likely to see its royalties from Apple reduced to a third before they are finally cut out altogether in 15-24 months’ time, says UBS.
Negotiations between Imagination and Apple are likely to see a cut in royalties from 30 cents per product sold using Imagination IP to 10 cents per product sold.
The 30 cent royalty rate brings in around $80 million a year for Imagination, which is about half its total revenues.
UBS reckons that, without Apple’s royalties, Imagination will be loss-making by 2019.
Negotiations between Imagination and Apple are likely to see a cut in royalties from 30 cents per product sold using Imagination IP to 10 cents per product sold.
The 30 cent royalty rate brings in around $80 million a year for Imagination, which is about half its total revenues.
UBS reckons that, without Apple’s royalties, Imagination will be loss-making by 2019.
