MediaTek are currently one of Imagination’s largest customers from a royalty unit perspective (>100m out of total volume of 500m).





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"At present all of MediaTek's mobile products use Imagination's graphics (ARM for TVs) but industry sources confirm that MediaTek's new mobile platform, MT6572, launching in Q2'13 will rely on ARM's GPU," says Janardan Menon at Liberum Capital.

Menon spoke with MediaTek who confirmed that going forward they will use both ARM and Imagination for mobile graphics.

MediaTek has been the main driver of Imagination’s royalty unit growth of late as Apple has slowed.

"This confirms our view that the GPU is not very sticky and easy to design in and out which favours the new entrant, ARM, which has a much lower market share," says Menon.

Liberum continue to believe that there are many long term uncertainties in the Imagination investment case as ARM's win at Mediatek shows.

S&P 500 powers to record close but Europe needs convincing

Yesterday’s strong finish in the US puts the S&P 500’s record high back in focus, but for the moments markets in the UK and Europe are displaying a notable lack of enthusiasm.

"Compared with the enthusiasm of its bigger brother, the Dow Jones, which continues to break new ground with an almost tedious regularity, the reticence of the S&P 500 to push back to its 2007 high is quite remarkable," says Chris Beauchamp at IG.

Even a reasonable day of US economic data was not enough to push this index back above the line, but in the grand scheme of things whether it breaches 1565 today, tomorrow or next week is not particularly relevant.

The key point is that markets still do not look like they are ready for a major fall. US data is still improving and the central banks are working hard to support their various economies.