** Imagination Technologies, which supplies graphicstechnology to Apple, -6.4%, second-top faller on FTSESmall Cap index after warns on profit, blaming slowdownin semiconductor and smartphone markets
** Mirrors weakness from German peer Dialog Semi,which cut its outlook on Tues citing softer-than-expected demandfor chips used in mobile phones such as Apple's big-screeniPhone
** News comes a day after Morgan Stanley said iPhone salesare expected to fall about 6 pct in FY2016, citing higher pricesin markets outside Americas, excluding China, and maturingsmartphone penetration in developed markets
** Analysts (in Sept) estimate Apple accounts for just overa third of Imagination Tech's revenues - with most demand comingfrom the iPhone
** Fourth straight day of losses for Imagination Tech, whichhas fallen 36% in last 3 months (until Mon close), 8th worstperformer on FTSE Small Cap index
** Elsewhere in the sector, ARM Holdings -1.2%, topFTSE 100 faller
(Reuters Messenging: muvija.m.thomsonreuters.com@reuters.net)
