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Apple and GT Advanced Reach Deal to End Partnership, GT to Sell Furnaces to Pay Debt
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Let this be a lesson, 
destroys companies. You think it's a good deal with ? Think again. "Sure, we'll loan you the money to build this plant to make our stuff." And just like that, as easy as the jobs were created, as quickly they will be eliminated.
US manufacturing is dying, please don't fight it because things like this will happen.
destroys companies. You think it's a good deal with ? Think again. "Sure, we'll loan you the money to build this plant to make our stuff." And just like that, as easy as the jobs were created, as quickly they will be eliminated.US manufacturing is dying, please don't fight it because things like this will happen.
You're kidding, right? Or missing an /s tag? The trend is for companies to focus on their core business and to get their materials from the market (who supposedly know more about that core business). I can't imagine anyone but the most die-hard vertical integrationist thinking Apple getting into the sapphire business would be a wise move.
The important thing is that the GTAT execs made out like bandits. God bless them everyone.
The BIG looser is probably Samsung (and other smartphone makers) - who probably panicked when they learned that Apple was investing in Sapphire production for use on their high end phones. We may never know how much they poured into rapid r&d and to build or acquire sapphire production equipment.
My guess is that with the technical problems becoming apparent that Apple played a cat & mouse game to misdirect other smartphone manufacturers. Might as well get something from your investment!
My guess is that with the technical problems becoming apparent that Apple played a cat & mouse game to misdirect other smartphone manufacturers. Might as well get something from your investment!
Does Apple not check out a company before it gets into bed with it? Were the books cooked?
OR
did Apple cause this company to tank?
OR
did Apple cause this company to tank?
A) Give other companies and their engineers credit. They make their own decisions.
B) Actually, I think you would. Any very large outlay of money is probably captured in the required reports publicly owned companies have to supply. If someone was in a sapphire race for half a billion, you'd probably see that reported somewhere so folks know where their money is going (but admittedly, I am not a big Sarbanes-Oxley guy)
Whereas I am sure that happens. In this case, it was just a goat rope. IMO. For all we know, Apple is a laughing stock among materials engineers as they all say "See! We told you! Guess your laundry IS the same color as everyone else's" Or not. I dunno. I like my iPhones just fine and never saw the lust for exotic materials others have. I turn them over every two years anyway, so...meh. Good riddance to a marginal idea.
Let this be a lesson,
US manufacturing is dying, please don't fight it because things like this will happen.
I don't know if you're being sarcastic there but if you're not being sarcastic, I completely disagree. Apple didn't force GTAT to make that deal. They're grown-ups so they can think. GTAT simply wasn't able to deliver on what they promised. That's not Apple's fault.
"SOME of the proceeds"? So Apple will lose money on this? Sounds like they got the short end of the stick.
It's interesting that Apple appears to be abandoning sapphire for now. Corning must be pleased. Maybe Samsung will buy the furnaces.
Some of the proceeds from selling the furnaces will pay back the whole amount of the loan, yes.
Unless you are counting for inflation here, Apple really only wasted their time.
Let this be a lesson,
IMO it's more a case of "don't bet the company trying out a new system".
I agree that those who have put forward this was possibly an R&D experiment to test the viability of sapphire as an iPhone screen cover. If it was, I could see GTAR's management believing that if it worked, they'd be zillionaires so they invested too deep (in focus and resources) on sapphire to the detriment of their other product lines. Add to that they likely signed an agreement that didn't favor them if things didn't work because it did favor them if things did work and that is what they were betting on.
So when sapphire didn't pan out, they had nothing to fall back on and were over-exposed to Apple. So they tanked.
It's hard to tell. We still don't know if Apple actually intended to use sapphire in the iPhone, nor do we know why Apple decided to reject GTAT's production lot. For all we know GTAT might have been 95% there, but Apple didn't have the time to let them get to 100% (presuming that is possible) and couldn't accept 95%. It's even possible that GTAT delivered everything they were supposed to but were screwed by downstream production problems. Anybody who knows isn't talking.
Sure... It goes like this:
In a galaxy far far away...
Apple: hey, I want x product with A quality. Can you do this?
Folks: sure. Give me your money, we'll give you x++ with A+ quality.
Later, after Folks CAHES the check...
Folks: Apple you're bad. You asked for x at A knowing is not possible...
Apple: whatttt? Give me me money back!
Folks: too late, meanny you... No soup for you!
What's it matter to him? He's totally loaded now. He'll probably stay unemployed the rest of his life.
Seriously? That is what you would do with a time machine?
----------
Do you have a source for that or is it just something that one believes in like believing in a higher power?
Exactly.
There were reports not too long ago saying that GTA's Arizona plant was gearing up to produce more sapphire than all the other sapphire producers combined.
And now they're bankrupt...
Crazy!
Yeah, the 700+ workers at the Arizona plant didn't get shafted, It was the shareholders who had 1% of their stock portfolio in GTAT.
Sarbanes-Oxley has to do with internal controls, not reporting requirements. You won't see R&D cost commentary on a 10K that lists exactly what it was for. You'd at the very most, if your lucky, get a commentary about "increased product material research" or something.
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Tim Cook has made a number of terrible decisions including Beats but seriously, the few people who dared question the awesomeness of GT's sapphire even on MacRumors were shot down hard and fast.
Funny how so many of the most vehement GT sycophants on this board are now GT haters crying how Apple got cheated. The truth is that the technical feat that GT was trying to accomplish IN THE GIVEN TIME FRAME was 50/50 at best and all those in the know realized that.
If Apple could have waited until the '15 iPhones were released (6S or 7) the sapphire would have been ready.
People here give Apple, Intel, and everybody else a free pass for missing deadlines but somehow can't share that same generosity with GT, but only because GT and Apple are no longer partners. Poor sports, most people here.
"SOME of the proceeds"? So Apple will lose money on this? Sounds like they got the short end of the stick.
It's interesting that Apple appears to be abandoning sapphire for now. Corning must be pleased. Maybe Samsung will buy the furnaces.
Why do you think the iPhone 6 still has 16gb as basic and the Mac mini has soldered ram. Got to make the money back.
Only one thing...
the building is owned by apple... apple made an agreement with arizona politicians to have tax agevolation... apple is not respecting the deal with politicians... politicians pretend the agreement to be respected or they are losing votes...
I think we will se Apple buying the furnaces, otherwise the will charged by a PR disaster (hinting at jobs in the USA and destructing them then) and by the taxes then...
I hope this happen because more then 700 workers are losing his job...
the building is owned by apple... apple made an agreement with arizona politicians to have tax agevolation... apple is not respecting the deal with politicians... politicians pretend the agreement to be respected or they are losing votes...
I think we will se Apple buying the furnaces, otherwise the will charged by a PR disaster (hinting at jobs in the USA and destructing them then) and by the taxes then...
I hope this happen because more then 700 workers are losing his job...
Did Apple tried on purpose to tank the company in order to buy subsequently all of its assets, technology and IP at a cheaper price and place its hands on the whole business? - good for Apple but bad for its reputation.
Or
Did Apple involuntary drived the company to insolvency and now will take the chance to buy all of its assets, technology and IP at a cheaper priece and place its hands on the whole business? - good for Apple and irrelevant for its reputation
Who knows?
Or
Did Apple involuntary drived the company to insolvency and now will take the chance to buy all of its assets, technology and IP at a cheaper priece and place its hands on the whole business? - good for Apple and irrelevant for its reputation
Who knows?