“Though bankrupt sapphire maker GT Advanced Technologies has accused Apple of crafting a ‘classic bait-and-switch’ deal, newly unsealed court documents reveal Apple’s side of the story, with the iPhone maker claiming it did everything it could to help the struggling supplier,” Neil Hughes reports for AppleInsider.
“A New Hampshire court on Friday published hundreds of pages of documents from GTAT’s bankruptcy filing, copies of which were obtained by AppleInsider,” Hughes reports. “‘Apple has bent over backwards to work with the Debtors, including making payments to the company notwithstanding the company’s failure to meet performance milestones, in the hope of obtaining usable, economically viable sapphire from the Debtors,’ Apple wrote. ‘Apple continued to fund the Debtors’ operations at the Mesa facility by making payments under the Prepayment Agreement even though the Debtors failed to satisfy the original payment milestones.'”
“Specifically, GTAT was unable to create sapphire at the 262-kilogram boule size that it had originally agreed to produce. And even on that front, Apple says it was willing to negotiate and accept sapphire produced at a smaller size,” Hughes reports. “Right up until GTAT’s surprise bankruptcy filing last month, Apple says it continued to attempt to work with the supplier, offering what it portrayed as ‘significant concessions.'”
Much more in the full article here.
U.S. SEC opens investigation into Apple supplier GT Advanced – November 6, 2014
GT Advanced says Apple settlement will survive unsealing – November 5, 2014
Judge orders GT Advanced bankruptcy papers unsealed – October 30, 2014
Full list of GT Advanced articles here.
Plain and simple con job. I hope these bastard see jail time.
Waste management affiliates?
That’s Wasted Management, Inc. Used to work for one of their affiliates.
I dreamt that the GTAT CEO had sold almost all his shares before authorising the company to declare bankruptcy, some risk he took!!! Unless of course I am still asleep as Crabapple and am dreaming all this up. 🙂
“Not only are we incompetent businesspeople and gamblers, but we’re also liars. But it’s…… uhhhh….. Apple’s fault. Yehhhh, that’s it.”
Wow. Makes you wonder if this was a shell company controlled by Samscum to infiltrate Apple and steal more trade secrets.
Wow, never considered that angle.
I think you are giving Samsung far more (intelligence) credit than they are capable of.
Oh, I love this part.
“GTAT has said that it assumed all of the risk, while Apple took on none, with an unfairly one-sided contract.”
Really, I’m thinking Apple had $439 million+ to lose which I’m pretty sure they did/will. Exactly what did GTAT lose except investors money? Ah……..I’m waiting……..
Apple has spent over $700 million ($439 to the fraudulent GTAT and $260 million on its own end) and has received almost nothing.
At what part of that the deal is “one-sided”?
If hell would exist, lawyers would definitely have special place there.
At the time of signing?
Ironically, in a sense, it is true, because GTAT got Apple’s $439 million and Apple got nothing. Pretty one-sided to me.
And we wonder why Apple does business with the Chinese? Maybe because it’s hard to find an American company who has both eyes on its customer rather than one on the stock market or on a government bailout. Free the markets and end bailouts. Jail those who manipulate for dishonest gain and recoup as much of their ill-gotten gain as possible. If it’s not in a European bank. Yep. China looks pretty good to me.
Bending over?!!! Enough already. Geez this gay stuff is really getting way out of hand. I wonder what Pres Vladimir Puddings….err..excuse me, Pres Vladimir Putins view and actions will be on this new revelation? Nevertheless nothing will make me give my iPhone 6 plus up, nothing!