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Apple Trying to Help GT Advanced Meet Milestones, Holds Off on Asking for Loan Repayment

wikiverse said:
Hold up. Apple are the reason GT are in this mess.

Apple: "we will loan you $500m for new equipment to make sapphire for out phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "we don't want your sapphire now, and you aren't allowed to sell it to anyone else."

GT: "WTF! How are we supposed to make money?"
Click to expand...

I noticed how you conveniently left out the part where GT didn't live up to their end of the deal: "GT has not yet received the payment because it has reportedly failed to deliver on the technical milestones that it was contractually obligated to meet under the original terms of the $578 million loan that Apple provided for purchasing equipment."

Think about it. Would you pay someone if they failed to fulfill their obligations?
 
macUser2007 said:
LOL.

This is spin by Apple, not integrity. Apple did not pay the last installment of the pre-payment it seems to have agreed to make so that GT will build a plant for Apple's exclusive use.

Apple seems to have pushed GT into a corner and GT called Apple's bluff.

Other producers did not agree to Apple's terms, so now Apple can't go back to them, unless it makes concessions in its proposals. Since these concessions are likely to be more costly to Apple than continuing with the GT contract, Apple appears to be backpedaling now.

Apple seems to have also burned bridges with Corning, since it is using Gorilla glass from smaller suppliers in the iPhone 6.
Click to expand...

Did you even read the article. Apple withheld the last loan payment because GT DIDN'T MEET ITS CONTRACTUAL OBLIGATIONS.

Instead of moving on to another sapphire partner or partners (which Apple certainly could have done) and demanding GT repay the loan, Apple is sticking it out.

You can say it's "spin" all you want, but these are simply the facts.

And where are all the sources for your other claims? Would love to see them.
 
mainstreetmark said:
Somewhere, there's a man drinking whiskey alone in a dark room, staring blankly at the wall, wondering how it all went wrong.
Click to expand...

Yup. Someone is getting the icy stare down from Tim Cook for letting things get to the point where GT filed for bankruptcy without consulting with Apple first. I wouldn't be surprised if heads rolled over this -- it's a major communication / publicity fiasco.
 
macUser2007 said:
LOL.

This is spin by Apple, not integrity. Apple did not pay the last installment of the pre-payment it seems to have agreed to make so that GT will build a plant for Apple's exclusive use.

Apple seems to have pushed GT into a corner and GT called Apple's bluff.

Other producers did not agree to Apple's terms, so now Apple can't go back to them, unless it makes concessions in its proposals. Since these concessions are likely to be more costly to Apple than continuing with the GT contract, Apple appears to be backpedaling now.

Apple seems to have also burned bridges with Corning, since it is using Gorilla glass from smaller suppliers in the iPhone 6.
Click to expand...

This is a fascinating fantasy you have constructed and you have cleverly skirted any facts. However, good spin requires you at least stay close to facts. Basing loans on performance is standard business; though most of what we have regarding this situation is speculation it is not unreasonable to assume GT Advanced have failed to fulfil expectations. There is no reason to doubt Apple's statements in this case. Gorilla Glass is a registered trademark of Corning; there are no "smaller suppliers".

Of course you are entitled to your own opinions, but let's be clear, that's all they are.
 
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macUser2007 said:
LOL.
Apple seems to have also burned bridges with Corning, since it is using Gorilla glass from smaller suppliers in the iPhone 6.
Click to expand...

What garbage. Gorilla Glass is a Corning product. Getting it from a smaller supplier is like having Pepsi supply your Coca Cola.
 
wikiverse said:
Hold up. Apple are the reason GT are in this mess.

Apple: "we will loan you $500m for new equipment to make sapphire for out phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "we don't want your sapphire now, and you aren't allowed to sell it to anyone else."

GT: "WTF! How are we supposed to make money?"
Click to expand...


Or, how about the real world scenario?:

Apple: "we will loan you $500m for new equipment to make sapphire for our phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "We need the sapphire now."

GT: "Umm, we don't have enough for 80 million units yet. Here's what we have. It's only enough for 8 million units, and there is a bit of a quality issue."

Apple: "That won't do. We told you we needed enough for 80 million."

GT: "But we're trying. Won't you just take what we made?'

Apple: "No. We'll talk when you have accomplished what you said you could."

GT: "So, can we sell what we have made to someone else?"

Apple: "No. We had a deal."

GT: "But.."

Apple: "Talk to you later."

GT: "WTF! How are we supposed to make money?"

Apple: "Deliver on your promises."
 
Wish they had used Safire, my screen has a massive scratch across the entire screen where it slid across a wooden floor...
 
yaxomoxay said:
You have no idea how much I would love to be in the position to say, "Well, let's give me the $500 millions later..."
Click to expand...

$500 million is quite literally PETTY CASH to Apple. It makes you wonder why they can't hire more people to actually get their entire Mac lineup out the door on time for updates (e.g. The Mac Mini hasn't had an update since 2012).
 
WHOA WHOA. Even Apple called it a loan. So for all you others in the last thread...

I want my APOLOGY noawww. grumble grumble armchair accountants.

/s /lol
 
wikiverse said:
Hold up. Apple are the reason GT are in this mess.

Apple: "we will loan you $500m for new equipment to make sapphire for out phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "we don't want your sapphire now, and you aren't allowed to sell it to anyone else."

GT: "WTF! How are we supposed to make money?"
Click to expand...

You are aware that GT Advanced probably doesn't have any quantities of Sapphire to sell, right? That's likely why they are in this situation; they have failed, so far, to consistently make a reliable product in quantity. That's why Apple was withholding the final part of the loan.

I think they are still struggling with the "WTF! How are we supposed to make any usable Sapphire?" problem.
 
wikiverse said:
Hold up. Apple are the reason GT are in this mess
Click to expand...

Or, it went something like this:


Apple: "We've developed a revolutionary technique for producing sapphire screens and we hear this is right up your wheelhouse. Can you manufacture these for us in the quantities we require?"

GT: "Sure, if you loan us a ton of money for expensive equipment."

Apple: "Ok, if you can guarantee production in sufficient numbers within our required timeframe, we can loan you $500m for new equipment and commit to buying a crap ton of them from you under an exclusive contract. "

GT: "You've got a deal!"

Months later...

GT: "Oops, we've run into manufacturing glitches and won't be able to deliver anywhere near the quantities you need within the expected timeframe and cost. Can you send over the rest of the money you were going to loan us before we file for bankruptcy?"

Apple: :-|
 
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GT-Advanced-failure-to deliver-tonnes-of-sapphire-gate

I had to. But Apple should just buy them out, seeing as the iWatch...uggg...Apple Watch will use Sapphire, and future iPhones will most likely, also.
 
We still don't know the details or the exact reason why the factory was built. Everyone keeps claiming the iPhone 6 was expected to use sapphire, however apples investment may be for an entirely different product, or quite possibly for the next phone release.

Let's remember, the deal to build the facility with 700 jobs wasn't signed until November last year. This deal included development of a special furnace to produce sapphire in high volume. That is a really short timeline to have it produce enough screens, ship them to China, and have them included in the iPhone 6 launch. That said, I am sure many of the details on the contract were not shared with media.

http://allthingsd.com/20131104/apple-inks-major-sapphire-supply-deal-with-gt-advanced-technologies/
 
wikiverse said:
Hold up. Apple are the reason GT are in this mess.

Apple: "we will loan you $500m for new equipment to make sapphire for out phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "we don't want your sapphire now, and you aren't allowed to sell it to anyone else."

GT: "WTF! How are we supposed to make money?"
Click to expand...

And GTATs executives were the ones who agreed to that deal. Apple didn't force them to do anything. The deal only prevents GT from selling sapphire produced from APPLES facility to other companies. GT can still sell their sapphire furnaces to other customers, which was GTs entire business model. The deal with Apple was they would build GT a factory to produce Apple sapphire, instead of just selling Apple the furnaces and having to manufacture it themselves.

GT was so sure of themselves, got in over their heads, and failed to meet what Apple requires to sell 100 million products a year.

GT has no one to blame but themselves. And I am an investor who lost money in this whole ordeal, so it's not like I'm exactly happy about all of this. On top of that, GT was not very forthcoming about any potential troubles they might have been having to meet Apples requirements or schedule. In earnings they acted like everything was going great and they would start to become profitable this quarter.
 
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Millah said:
And GTATs executives were the ones who agreed to that deal. Apple didn't force them to do anything.

GT was so sure of themselves, got in over their heads, and failed to meet what Apple requires to sell 100 million products a year.

GT has no one to blame but themselves. And I am an investor who lost money in this whole ordeal, so it's not like I'm exactly happy about all of this.
Click to expand...

Though let's be real - as much as GT is to blame, this isn't a normal quarter for Apple.

Yes, they normally sell 100 million phones in a year. But this QUARTER (by that I mean the end of the year), they want 70-80 million.....which could make for the biggest quarter ever - even bigger than Samsung's Q3 2013 (in which they sold 86 million smartphones).
 
bbfc said:
Exactly. This is how a company acts with Integrity. Well done Apple.
Click to expand...

How is this integrity? Forcing them into an exclusivity deal is part of the problem.

if they had been allowed to provide product for other suppliers they may have been able to stay solvent without having to cheat by going through Chapter 11.
 
rdlink said:
Or, how about the real world scenario?:

Apple: "we will loan you $500m for new equipment to make sapphire for our phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "We need the sapphire now."

GT: "Umm, we don't have enough for 80 million units yet. Here's what we have. It's only enough for 8 million units, and there is a bit of a quality issue."

Apple: "That won't do. We told you we needed enough for 80 million."

GT: "But we're trying. Won't you just take what we made?'

Apple: "No. We'll talk when you have accomplished what you said you could."

GT: "So, can we sell what we have made to someone else?"

Apple: "No. We had a deal."

GT: "But.."

Apple: "Talk to you later."

GT: "WTF! How are we supposed to make money?"

Apple: "Deliver on your promises."
Click to expand...

I'm pretty sure GT made enough (remember the bill of lading from China to California article?) but the Chinese factory couldn't convert it into screens like Apple wanted.
 
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