British chip designer back from the doldrums
Frenzy over Apple shares had a spin-off impact on Britain’s Imagination Technologies last night (14th August 2013), with its stock closing nearly 16 per cent higher at 286 pence. Imagination, in which both Apple and Intel have major stakes, has been in the doldrums since June when it reported lower full-year profits due to a slowdown in licensing of its technology. It licenses its designs to chipmakers and receives a royalty on every unit shipped, but had lost business it expected from customers such as Texas Instruments and ST Ericsson as the smartphone market continues to consolidate around a few big players.
But investor sentiment about the company changed swiftly yesterday in the wake of news that US billionaire investor Carl Icahn had taken a large position in Apple, sending the Cupertino manufacturer’s shares soaring to a six month high.
Reports that Apple is also gearing up to release a new iPhone next month further whetted investor appetite both for its shares, and those of Imagination.