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CompaniesImagination Tech shares dive after Apple disappointment

Shares in Imagination Technologies have flopped 7 per cent this morning after Apple, its biggest customer, last night reported its first quarterly decline in revenues in 13 years.1

Imagination s graphics chip is a key component in Apple mobile devices, and its fortunes are closely tied to those of the iPhone maker. Last night, Apple said that in the first quarter iPhone sales were down 10m year-on-year to 51.2m, the first year-on-year sales decline in the nine-year history of the device. Apple s shares dropped more than 8 per cent2 in after-hours trading on Tuesday, wiping out some $48bn in market value.

In March, Imagination shares went on a wild ride3, surging 20 per cent amid speculation of a bid from Apple, before plunging back to trade flat when Apple released a statement to say talks had been held but would not lead anywhere.

References

  1. ^ reported its first (www.ft.com)
  2. ^ dropped more than 8 per cent (on.ft.com)
  3. ^ went on a wild ride (www.ft.com)

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