How is that Apples fault if that company ******** up?
Exactly, by missing a deadline they ****** Apple up.
How is that Apples fault if that company ******** up?
How is that Apples fault if that company ******** up? Maybe that company did not deliver what was promised in the deal?
why don't u explain it then
So Apple basically has GT Advanced Technologies sign an exclusive agreement that they will only produce saphire for Apple's rumored iPhones and Apple Watches over the next five years at a high volume capacity, thus limiting GT's partnerships with virtually any other potential clients. Then GT suddely files for Chapter 11 bankruptcy due to not enough business continuity/cash flow.
http://investor.gtat.com/releasedetail.cfm?ReleaseID=804195
Did Apple inadvertantly screw their business partner by having them sign this exclusive contract? Should Apple at least explore a possible buyout of this company or at least license the tech?
Mixed feelings about Apple's business practices some times.
IMO, and I have no idea if this is correct, due to Apple having GT Advaced sign the exclusive deal and gauranteeing sapphire business, Apple wasn't able to maintain their projected production volume of iPhone 6's, thus eliminating the sapphire glass from this device entirely. Since Apple wasn't placing the orders, GT Advcanced gets screwed.
(At least this is how it comes across to me.) If someone else has a better explanation, I'd love to hear it.
IMO, and I have no idea if this is correct, due to Apple having GT Advaced sign the exclusive deal and gauranteeing sapphire business, Apple wasn't able to maintain their projected production volume of iPhone 6's, thus eliminating the sapphire glass from this device entirely. Since Apple wasn't placing the orders, GT Advcanced gets screwed.
(At least this is how it comes across to me.) If someone else has a better explanation, I'd love to hear it.
Makes some sense. I'm still thinking the iPhone 6's were supposed to have Sapphire glass displays. With them missing the deadline to be able to mass produce enough it shifted their timeline slightly. Still think it is a viable company and product.
maybe they just use it as a legal way to clear out some/most dept they have and than Apple zooms in and buys them without buying most of the debt (assuming they get court approval for this).
Having worked at two companies that had to file chapter 11, it seems to be a nice way to get rid of dept (one of those companies emerged and was successful afterwards, the other filed for chapter 7 after a year and the assets were sold of at a auction to the main competitioner for cheap - big win for the buyer)
why don't u explain it then
I think you're on to something.
My hunch is, GT bet BIG on Apple using sapphire for the 6, Apple probably told them they'd need to have production at X by May or something, and they missed the deadline.
Apple went ahead with "ion strengthened glass" (lol), and told GT that they'd still use them for other things, but not the 6.
Because GT went "all-in" they can't afford this, and have capacity out the yin-yang, but no use for it. Chapter 11.
If that would be the case that Apple wouldn't have fulfilled their part of the contract, they would have to pay lots of money to GT Advanced Technologies for breaking the contract - probably as much as the contract was worth, or even more for damage of reputation (At least that is how those contracts usually work)
The simple version is that 11 keeps you in business and lets a court manage your debt so you stay in business and everyone (almost) gets paid back over time.
I think you're on to something.
My hunch is, GT bet BIG on Apple using sapphire for the 6, Apple probably told them they'd need to have production at X by May or something, and they missed the deadline.
Apple went ahead with "ion strengthened glass" (lol), and told GT that they'd still use them for other things, but not the 6.
Because GT went "all-in" they can't afford this, and have capacity out the yin-yang, but no use for it. Chapter 11.
Wrong. An iPhone 6 sapphire display would be way too brittle/expensive.
Maybe they made huge investments in tech trying to get ready for the 6 line of phones, couldn't make it in time and now have no revenue.
Hold out for the 7 boys.