Apple to cut Imagination royalty to a third, says UBS.


Imagination HQ

Negotiations between Imagination and Apple are likely to see a cut in royalties from 30 cents per product sold using Imagination IP to 10 cents per product sold.

The 30 cent royalty rate brings in around $80 million a year for Imagination which is about half its total revenues.

UBS reckons that, without Apple’s royalties, Imagination will be loss-making by 2019.



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