“Shortly before 7 a.m. Pacific time on Oct. 6, the chief executive of GT Advanced Technologies Inc. called an Apple Inc. vice president with bad news: GT, which was to supply Apple with superhard sapphire screens for its new iPhones, had filed for bankruptcy 20 minutes earlier,” Daisuke Wakabayashi reports for The Wall Street Journal. “The filing surprised Apple, because the companies had been negotiating changes in their contract to ease GT’s financial strain, according to a letter Apple later sent to GT’s creditors. Executives of the companies had planned to meet the next day at Apple’s headquarters.”

“The Apple-GT marriage was troubled from the start. GT hadn’t mass-produced sapphire before the Apple deal. The New Hampshire company’s first 578-pound cylinder of sapphire, made just days before the companies signed their contract, was flawed and unusable. GT hired hundreds of workers with little oversight; some bored employees were paid overtime to sweep floors repeatedly, while others played hooky,” Wakabayashi reports. “Apple put blame for the deal’s failure ‘squarely at the feet of GTAT’s own management,’ according to the letter to GT’s creditors, which Apple allowed The Wall Street Journal to review. ‘We never wavered from our commitment to make the project successful.'”

“It took roughly 30 days and cost about $20,000 to make a single boule,” Wakabayashi reports. “The people familiar with Apple’s operations said more than half the boules were unusable. GT stored unusable cylinders in rows in an area of the Mesa factory that employees labeled the ‘boule graveyard,’ people close to GT’s operations said.”

Read more in the full article here.

MacDailyNews Take: On October 10th, in response to “GT Advanced blames ‘oppressive and burdensome’ Apple terms in quest to ax sapphire production,” we replied:

You know, terms like “deliver us a quality product in bulk that we can actually use.”

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GT Advanced Tech creditors chafe at settlement deal with Apple – November 19, 2014
Apple sticking with Arizona plan after sapphire supplier GT Advanced falters – November 18, 2014
Did Apple bully GT Advanced Technologies? – November 11, 2014
GT Advanced COO claims Apple used ‘bait and switch’ tactic – November 7, 2014
Court unseals GT Advanced documents: Apple says it ‘bent over backwards’ to help sapphire supplier – November 7, 2014
GT Advanced blames ‘oppressive and burdensome’ Apple terms in quest to ax sapphire production – October 10, 2014