British chip firm Imagination Technologies has said that a slowdown in the top end of the smartphone market, where Apple and Samsung dominate, will hit the number of chips it ships in the second half of the year.
The company warned that it now expected its partners, including the fruity firm, to need between 580 million and 630 million chips in Q2, down from its previous forecast of around 650 million.
If the company's MIPS processors are taken into account, from its acquisition of MIPS Technologies earlier this year, total chip shipments will reach 1.3bn.
At the same time, it said that its first half adjusted pre-tax profit had dropped to £13.2m from £16.8m, partly due to losses in its Pure digital radio unit. Revenue in the months to the end of October grew by 19 per cent to £85.2m.
"There will continue to be fluctuations and changes in the markets in which we operate, but we are confident that our strong and comprehensive IP families, and the solution-centric platforms they are enabling, will allow us to take advantage of the numerous growth opportunities ahead," chief exec Hossein Yassaie said in a statement.
The news sent shares falling over 15 per cent, dropping to around 205p on the London Stock Exchange. ®