Boston, MA 02/06/2014 (wallstreetpr) – Imagination Technologies Group plc (LON:IMG) which is an innovative graphics processing service provider through its PowerVR technology recent got an extension on service agreement with Apple Inc. (NASDAQ:AAPL).
This time around the extension is for multiple years and allows license-based service provisions.
Accordingly, PowerVR will revive the features and funcationality of the A-series chips which run the iDevice series. Incidentally, the A-series chips used on all native idevices such as the iPod Touch, iPad, iPhone as well as Apple TV are actually proprietary technology belonging to Apple Inc. (NASDAQ:AAPL). However, the company chooses to outsource the graphics processing features to the likes of Imagination Technologies Group plc (LON:IMG) to ensure higher optimization of specialized features.
The preliminary deal terms include licensing fees to be paid Apple Inc as well as royalties for use of Imagination Intellectual property. The A-series chip currently part of the deal is the A7 version which relies on the PowerVR Series 6 graphics core. Incidentally, Apple holds over 10% stake in Imagination Technologies Group plc (LON:IMG) and uses the PowerVR Series 6 graphics core on its 64 bit ARM CPU.
Meanwhile, Apple Inc, begins Brazilian venture.
Brazil to open Apple Store by Feb 15
In what is expected to be a first in the South American continent, Apple Inc, will open its Apple Store in Brazil. The store located in the nation’s capital of Rio de Janeiro, at the VillageMall, is expected to begin services as early as Feb 15, 2014.
Interestingly, the store has been under construction since 2011.
Apple Inc. (NASDAQ:AAPL), continues to drive its online presence to store fronts through its Apple Stores. This is more so in geographies where Apple does not have even a toe hold in the retail space. Just before Brazil, it was Turkey which saw an Apple Store launch.
High Import Duties
However, the practical functioning of these stories will remain in suspension considering the fact that most overseas stores have to bear import duties. Therefore, an unlocked iPhone which may cost $649 only in the U.S., may cost over $1,167 at such localized Apple stores. Therefore, it needs to be seen how Apple Stores are likely to function in the long term.
The Brazilian store will be Apple Inc. (NASDAQ:AAPL)’s first physical store presence in South America.
