Apple acquires stake in graphics chip firm Imagination

Apple has acquired a 3.6 percent stake in mobile graphics chip designer Imagination Technologies Group, a move expected to improve graphics and video processing on upcoming iterations of the iPhone and iPod touch. Apple will spend about $5 million for 8 million shares of Imagination Technologies--the firm's PowerVR chip designs span across a variety of applications, but are most prominent in mobile devices. An Apple/Imagination licensing partnership has been rumored for some time: All the way back in April, AppleInsider reported that "The next generation of iPhone appears set to claim exclusive access to advanced graphics core and video decoding technology, thanks to a secret licensing deal between Apple, mobile graphics leader Imagination Technologies, and Samsung, the iPhone's ARM ‘system on a chip' manufacturer."

For more on Apple's investment in Imagination Technologies:
- read this AppleInsider article

Related articles:
Jobs: Adobe Flash not good enough for iPhone
Study: iPhone 3G will revolutionize mobile video