Apple to 'stop using Imagination chips in new devices'
Apple will stop using technology from UK chip designer Imagination Technologies Group in new devices within two years.
According to the Kings Langley-based firm, the tech giant has been working on a separate, independent graphics design in order to control its products.
Apple has been developing with, and relying on, Imagination tech for a number of years, but will be reducing its future reliance.
In a London Stock Exchange statement, Imagination said that 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".
The company added: "This evidence has been requested by Imagination but Apple has declined to provide it.
"Further, Imagination believes that it would be extremely challenging to design a brand new GPU (graphics processor unit) architecture from basics without infringing its intellectual property rights, accordingly Imagination does not accept Apple's assertions."
Apple is Imagination's largest customer, reportedly accounting for approximately half its revenues.
The firm is now discussing potential alternative commercial arrangements with the Californian company for its current license and royalty agreement.