Apple giveth, and Apple taketh away. That’s the lesson Imagination Technologies, Apple’s longtime supplier of graphics processors, has learned of late. After announcing that the iPhone maker was winding down its use of Imagination’s technology, the company’s stock price promptly fell off a cliff that same day. That came after Apple poached a handful of Imagination’s top executives.
As this chart bellow shows, Imagination is far from the only company with a huge dependency on Apple. While firms like Cirrus Logic, Apple’s audio chip supplier, and Dialog Semiconductor, a power-management chip designer, have reached great heights being a part of Apple’s supply chain, their continued success seems to hinge on staying in the giant’s good graces.
Apple is the world’s most valuable company, so it’s bound to drive a high percentage of some firms’ revenue. While this is the case, the companies that work for the giant will be directly dependent on what is happening to it. This gives good opportunities for investors who closely monitor Apple.
Jr Trader Petar Milanov
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