Apple Caused This UK-Listed Stock To Plummet 70%

Imagination Technologies Group plcIMG

The sell-off immediately followed Apple Inc. AAPL's announcement that it won't be using Imagination Technologies' chips in its new products. According to a CNBC report, Imagination develops chips that provides the graphics in iPhone, iPad and iPod products.

Imagination Is Fighting Back

Imagination said in a press release that Apple hasn't provided any evidence to support its claim that it can develop the technologies in-house without violating its patents, intellectual property and confidential information. Related Links: Top Benzinga Stocks Of The Week: GE, Facebook, Apple And More Apple iPhone 8 Build Reduction Rumors Aren't True: BlueFin _________ Image Credit: "The ImgTec MIPS Creator CI20 system-on-a-chip with a USB serial adapter connected to its UART header." By Michael McConville - Own work, CC BY 4.0, via Wikimedia Commons

Apple ranks as Imagination Technologies' biggest clients and the report prompted the stock to fall to its lowest point since 2009. Instead, Apple said it will be developing its own technology as it wants to reduce its future reliance on companies such as Imagination and will cease using its products within 15 months to two years.

"This evidence has been requested by Imagination but Apple has declined to provide it," Imagination added in its press release.

Also important to note, Apple owns an 8.5 percent stake in Imagination and CNBC suggested that Apple even held talks about acquiring the company.

Finally, Imagination said that it will be issuing a further announcement in due course.