- Category: Share Price Drivers
- Published on Wednesday, 27 March 2013 12:44
- Written by Will Peters
MediaTek are currently one of Imagination’s largest customers from a royalty unit perspective (>100m out of total volume of 500m).
"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.
Newer news items:
- Centamin Plc (LON:CEY): Release of preliminary production results from Sukari - 09/04/2013 12:05
- Google Inc: GOOG's interest in WhatsApp is a sign of weakness says tech analyst as buyout negotiations stall - 09/04/2013 11:08
- Research In Motion Ltd : BBRY to release results that many see as a 'referendum' on the Z10, Ovum analyst says wait for next quarter - 27/03/2013 14:26
- Royal Bank of Scotland Group plc : RBS shares are overvalued, bank continues to be financially repressed say Berenberg - 27/03/2013 14:15
- Royal Bank of Scotland Group plc : We're OK, Honest! say RBS in unprovoked statement post FPC announcement - 27/03/2013 14:10
Older news items:
- Intel Corporation online TV: INTC does not want to become a provider of consumer electronics or a provider of television services - 27/03/2013 12:30
- Intel Corporation : What is the real reason why INTC is buying up TV rights? - 27/03/2013 12:23
- Brokers: Tesco plc + Compass Group Plc see TP upgrades; US markets tipped to follow European bourses lower - 27/03/2013 11:52
- Barclays plc, ICAP plc: IAP and BARC shares could see further losses as stock charts continue to turn bearish; is IAP oversold though? - 27/03/2013 11:06
- 350 bn GBP less in lending as UK banks told to find 25 BN GBP by Christmas - 27/03/2013 10:45
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