Black Swan moment for Imagination

Shares in Imagination Technology, a British Tech firm, plunged by 62 per cent, 103p, and its market capitalisation fell from £745m to £290m, after their largest customer Apple said it will no longer use its products.

This is what we call a black swan movement for the company and investors in Imagination as there were no signs this was coming or any supply chain evidence of alternative design socket changes. Imagination said: “Apple has asserted that it has been working on a separate independent graphics design and will be reducing its future reliance on Imagination’s technology in about two years time.”

Apple warned that the Hertfordshire based chipmaker,  Imagination  would not be eligible for royalty payments under the current licence and royalty agreement.

Imagination has said “ apple has not presented any evidence to substantiate  its assertion that it will no longer required its technology without infringing its patents.

However, ex-boss of Imagination Technologies Sir Hossein Yassale, ended a 18-year career with the firm after a couple of profit warnings in February 2016, leaving Andrew Heath the task of steadying  the sinking ship and cutting costs.

Sir Hossein Yassale 60, born in Iran, PhD, Electronics and communication from University of Birmingham, who specialised in ultrahaptics , specialists in mid-air touchless haptic technology.

Sir Hoosier Yassale only lost his will-cost options, but was able to cash in 1, 028,000 shares during his leave between early February and the end of April 2016. He could have gained double the Imagination’s price  yesterday after the potential disappearance of Apple.

Competitors like  Arm Holdings and Intel have diversified into other markets successfully.