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Apple Withheld $139 Million Payment from GT Advanced Ahead of Bankruptcy Filing
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Lets try and spin this againstsomehow.
wasn't hard. within the headline and first paragraph it was stated that the company was forced to file bankruptcy cause Apple didn't pay them.
But we don't know why the payment wasn't made. That is the crux if the issue. Until we know that detail we can't really say that Apple was evil
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Very possibly, which could be why the final payment hasn't been made. They haven't made the final promised delivery
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sorry but that rumor was BS. Anyone that knows anything about sapphire knows that a piece that big would be weak as hell if it was dropped or dropped on. No way would Apple risk the lawsuits that would happen if word got out that they used sapphire on the screens and they break super easy at that size. there would be claims that Apple did it in the hopes folks would break their screens all the time etc.
Maybe they toyed with the idea and tested it but the rejection would have come very quickly. Like the first drop tests
How else do they get it? They don't just make it in a factory do they, lol.
So it's a corundum conundrum to you, now, is it......
But you've already been learned by now. I just wanted to use the phrase...
Here's an interesting take if it's true http://news.investors.com/technolog...take-equipment-and-tech-license-from-gtat.htm
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That's the gist of the IBD article I linked to here. If it's true Apple pulled the plug on GT but not necessarily on the technology that it bankrolled.
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$578 million is a drop in the bucket for Apple. Perhaps they toyed with the idea, or tried to see if they could develop a sapphire/glass "alloy" that would be scratch-resistant but also relatively shatter-resistant. If it worked, great, but if not, they'd still have plenty of sapphire to use in the higher-end versions of the Watch and could call it a day.
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I'm sure the SEC and DOJ will at least look at it given that it came a day before the iPhone 6 announcement and didn't fit an obvious pattern (I.e. he hadn't been selling on the same day each month). But let's not make assumptions until we know the facts. Perhaps he scheduled the sale months in advance knowing that Apple would be making an announcement about that time but not knowing whether or not his company's material would be part of that announcement. If Apple had announced that the iPhone 6 or even just the Plus would have a sapphire display we wouldn't be having this conversation but would instead be saying the CEO should have held onto his stock.
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That's the gist of the IBD article I linked to here. If it's true Apple pulled the plug on GT but not necessarily on the technology that it bankrolled.
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$578 million is a drop in the bucket for Apple. Perhaps they toyed with the idea, or tried to see if they could develop a sapphire/glass "alloy" that would be scratch-resistant but also relatively shatter-resistant. If it worked, great, but if not, they'd still have plenty of sapphire to use in the higher-end versions of the Watch and could call it a day.
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I'm sure the SEC and DOJ will at least look at it given that it came a day before the iPhone 6 announcement and didn't fit an obvious pattern (I.e. he hadn't been selling on the same day each month). But let's not make assumptions until we know the facts. Perhaps he scheduled the sale months in advance knowing that Apple would be making an announcement about that time but not knowing whether or not his company's material would be part of that announcement. If Apple had announced that the iPhone 6 or even just the Plus would have a sapphire display we wouldn't be having this conversation but would instead be saying the CEO should have held onto his stock.
Perhaps and probably likely but now it would have to be in the hands of the courts and the court will ensure that if there is a purchase by a company with the net worth of Apple, then they'll ensure the purchase is beneficial to the point where creditors are repaid. The courts aren't going to automatically unload the company in some fire sale. GT should have attempted a fire sale but it seems like they truly want to reorganize and move forward.
Apple is smarter than this because their lawyers would have to know that the trustee in the bankruptcy will come after them for outstanding debts. Apple will have to pay, eventually.
As for the article, the WSJ is silly because I would imagine that Apple isn't the cause for the BK, but they're certainly not helping matters. If Apple truly withheld payment for any reason, they're in the wrong. There is no reason a company like Apple should not pay a bill when due.
Did you even read the article?
Apple gave GT a LOAN. Apple was not paying a bill - GT actually had to make loan payments to get more money from Apple, and supposedly wasn't. Apple loaned GT millions - all of which is now lost to Apple because of the bankruptcy filing.
APPLE is the one who is out $439 million, and GT agreed to pay Apple back, but GT is not going to, instead they filed bankruptcy. Apple's lawyers will try to get what they can out of GT, and deservedly so.
Duh, using miners is 20th century tech. Apple is using a massive herd of repurposed truffle pigs to sniff out the sapphires...
How do you know about truffle pigs?
Wrong, it is Transparent Aluminum. A San Francisco company has been quietly working on it since 1984. Apparently, immediately after their initial production run for a mysterious client, the Macintosh containing all the vital information was corrupted by a sophisticate computer virus. The people involved had some odd memory lapses as well.
That's one of my favorite scenes from that movie. Scotty stands there "computer...computer..." Guy hands him the mouse, Scotty holds mouse up to his face and speaks into it "computer...computer..." LOL
Apple should now just buy GT and have their own glass furnaces
They might end up with the furnaces as a result of the bankruptcy. If they aren't allowed to restructure, they would have to liquidate to pay their debts. There is an ordering of who gets to collect, and in which order. Lawyers are up there, otherwise now lawyer would waste their time representing an entity involved in bankruptcy. I suspect Apple made sure they were pretty high up on the collection priority before loaning that kind of money.
Apple is infamous among suppliers for their contracts that give them exclusivity, sometimes even for years after Apple withdraws any orders. In other words, the supplier cannot sell to anyone else even if Apple buys nothing.
It's a suicidal clause for suppliers, and you'd think they'd learn by now.
Some have. Some suppliers in the Far East are refusing to let Apple pay for part of their factories, and others who have, want out of the deal.
A supplier would only go for that clause if they thought the benefits outweigh the risks.
Maybe GT was hurting, maybe on the road to closing, and this was their big chance to make it big? The downsides aren't that bad in this situation.
Or, more likely, the CEO of GT made millions in the deal, and didn't care about his company. This seems most likely in today's business climate.
Tell that to Bill Gates. He should never have promised IBM do deliver an operating system when he didn't have one, right??
Duh, using miners is 20th century tech. Apple is using a massive herd of repurposed truffle pigs to sniff out the sapphires...
There would never have been any Genetically-Modified Frankentrufflepigs if Steve were still around...
How else do they get it? They don't just make it in a factory do they, lol.
Yes they do. Check out youtube: http://www.youtube.com/watch?v=H-x7XMPaWIE
Lets try and spin this against
That's easy - who would enter into such an important contract with a company so close to insolvency.
This would never happen under Steve's watch. Heads should roll at Apple.