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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.

Article source: https://www.electronicsweekly.com/news/business/apple-cut-imagination-royalty-third-says-ubs-2017-04/