Shares of U.K. chip-designer Imagination Technologies have fallen almost 70 percent after Apple announced that it will no longer be using its chips in its new products.
In early deals Monday, shares were down 69 percent to 85 pence ($1.06) – their lowest point since 2009.
Shares closed up Friday at £2.70 ($3.38) prior to the news from Apple – its largest customer – that it is to stop using the chips in its products within the new 15 months to two years’ time.
Imagination Technologies currently supplies the chip technology used within Apple’s iPhones, iPads and iPods, however the California-based technology giant told Imagination that it is developing its own “independent graphics design in order to control its products and will be reducing its future reliance on Imagination’s technology.”
Imagination has noted that this development could breach the duo’s current licensing agreement.
“Apple has not presented any evidence to substantiate its assertion that it will no longer require Imagination’s technology, without violating Imagination’s patents, intellectual property and confidential information,” Imagination noted in a press release.
“This evidence has been requested by Imagination but Apple has declined to provide it.”
Imagination said in its latest annual report that it has other licensing deals with customers, but described the Apple contract as “essential”. The company relies on Apple for about half of its revenues.
The Financial Times reported last year that Apple, which owns 8.5 percent of the UK company, had held talks about buying Imagination.
Apple declined to comment on the latest development when contacted by CNBC.