“Apple Inc. used ‘bait-and-switch’ tactics in negotiating a contract with sapphire-maker GT Advanced Technologies Inc. (GTATQ), guaranteeing itself ‘heads I win, tails you lose’ terms, a GT executive said in an unsealed court document,” Dawn McCarty and Phil Milford report for Bloomberg. “”
“Daniel Squiller, chief operating officer of GT Advanced, blamed the company’s losses on Apple, with which it had a supply agreement, in a bankruptcy court declaration,” McCarty and Milford report. “‘With a classic bait-and-switch strategy, Apple presented GTAT with an onerous and massively one-sided deal in the fall of 2013,’ the executive wrote. ‘When GTAT’s management expressed obvious concerns to Apple regarding the deal terms during the contract negotiations, Apple responded that similar terms are required for other Apple suppliers and that GTAT should ‘Put on your big boy pants and accept the agreement.””
“Apple countered that it ‘committed to put at risk up to $2 billion in connection with this project’ and that it bent over backward to work with GT Advanced,” McCarty and Milford report. “Apple made payments even when the GT Advanced failed to meet deadlines, lawyers for the computer company wrote.”
Read more in the full article here.
MacDailyNews Take: Did GT Advanced sign the deal with Apple? if so, you live and die by it, big boy pants or not.
Court unseals GT Advanced documents: Apple says it ‘bent over backwards’ to help sapphire supplier – November 7, 2014