Apple's Failed Sapphire Glass Supplier GT Advanced Charged With Misleading Investors

[Michvuee]

The glass on camera lens is suppose to be Sapphire, but it scratches at a 6 just like the glass on the front of the phone.

 

[0924487]

Tell that to Mohs scale, it scratches at the same level as Gorilla Glass which scratches at level 6 so no benefit.

Here's Zacks scratch test

How does this guy make money to fund those?

 

[Natzoo]

I thought Apple used gorilla glass (the agreement they had for the first iphone), I thought it continued

 

[k1121j]

Even if the deal with GT worked out, sapphire iPhone screens wouldn’t have been worth what the price increase would’ve probably been. Yeah they wouldn’t have scratched as easily, but they would be more shatter-prone.

its your opinion but with the apple watch it was totally worth it never a scratch and never had to worry about screen protectors so for me it would have been.

 

[Mobster1983]

No, I believe Apple owned the building and built the solar array. GTAT used their massive factory. When the deal fell through, Apple retained the factory.

I owned some GTAT stock. I bought at around $10, it peaked a few months later at around $22 or so. Then the August earnings call from GTAT indicated all things looked good, especially for their project with their major client. Then when the iPhone (6, I think) was announced, analysts were confused there was no mention of sapphire glass. The stock still was doing ok in the teens. Around Oct 1, they announced they were suspending trading, and a few hours later they announced bankruptcy. When it resumed trading, the prices were at around 50¢. They clearly misled investors. I'm a little bitter, but it has changed my perspective on investing in small growth companies. I wasn't even all-in on sapphire glass. I liked that they held other patents on advanced solar technologies, among other things.

I did the same. Had a little extra and bought it for around $8, knowing at the time it was a high risk. But if they actually pulled it off, profits would have been sweet. First one of my stocks that was a total loss, but no biggie. That's the game.

Curious if this lawsuit will open up what is left of the company, and possibly the CEO personally, to liability to the shareholders. Maybe I should draft up a class-action lawsuit and file it first thing Monday morning.

 

[ani4ani]

Dude, you do realize that what  says in conference calls can be held against them in court. The top guys could go to jail if they lied.

Dude, the truth is what they believe, so they will always be safe

 

[redman042]

Are you serious?

https://www.apple.com/lae/iphone-xs/specs/

The one I'm saying is the camera lens that Apple indicated in the specs as "Sapphire crystal lens cover"
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See this video. Same impure Sapphire that scratches at 6.

Regardless of what the video shows, in my experience over the last four years of stainless steel Apple Watch ownership, the sapphire that Apple uses is WAY more scratch resistant than the glass on iPhones. I’ve banged my watch display against doorknobs and countertops a number of times, sometimes hard, and have never seen the slightest scratch on my watch display.

 

[EvilEvil]

Trillion dollar company cutting corners, who would have thought?

 

[SPUY767]

I remember this company, essentially GT lied about their abilities then it bit them in the toosh IIRC

Was it run by that same woman who ran theranos?

 

[ApfelKuchen]

Dude, the truth is what they believe, so they will always be safe

In an earnings call, in a quarterly or annual financial report... Look back at the news article that triggered this discussion.

Apple's Failed Sapphire Glass Supplier GT Advanced Charged With Misleading Investors

You and I are free to distort our personal beliefs into "truth" all we want, but there are still laws when it comes to the utterances of publicly-held companies. And when the government doesn't step in, investor lawsuits are still a likely result. Accounting results, terms of contracts, and the like are not subject to, "Sorry, I believed..." excuses. Honesty still matters in some circles.

 

[Jay3846]

Both my Apple Watches scratched on the glass. Luckily, with my first one, the scratch wasn't on an area that affected the image and was able to sell it. The two scratches I have on my current one, I'm not so lucky. The one I have now got scratched putting together a basketball hoop a few months ago. It'll be harder to sell this one.

You may already know this, but the Aluminum Apple Watches do not have a sapphire crystal, they use “Ion-X strengthened glass”. Only the Stainless Steel and above Apple Watches have a sapphire crystal. That may explain the scratches on your Apple Watch, if you have an aluminum version.

 

[racerhomie]

Dude, the truth is what they believe, so they will always be safe

Lol they have the sales no. That has to be shown in court if investors doubt.

 

[Not-Sure]

Of course.

People were wrongly blaming Apple, but it was GT Advanced that was over-promising on their capabilities

It was Apple fault to offer a product they didn't have. Basic project management. Is like inviting people to a wedding when the guy hasn't proposed to the bride. Amazing that one needs to explain things using crayons these days.

 

[realtuner]

It was Apple fault to offer a product they didn't have. Basic project management. Is like inviting people to a wedding when the guy hasn't proposed to the bride. Amazing that one needs to explain things using crayons these days.

Say what? Apple never offered any sapphire related products. GT Advanced lied about their abilities to produce the quality and quality of sapphire Apple wanted. This is why the SEC is suing GT Advanced and NOT suing Apple.

You were mentioning crayons?

 

[Marekul]

How does this guy make money to fund those?

He has a YouTube channel with 3.6 million subs.... makes minimum 200k a year if he does sponsorship/merch/promotion/affiliates you can 3x that. And that is a very conservative estimate.

 

[PlainviewX]

You may already know this, but the Aluminum Apple Watches do not have a sapphire crystal, they use “Ion-X strengthened glass”. Only the Stainless Steel and above Apple Watches have a sapphire crystal. That may explain the scratches on your Apple Watch, if you have an aluminum version.

Well, that sucks ass! That I did know, but I completely forgot about it.

 

[cmaier]

It was Apple fault to offer a product they didn't have. Basic project management. Is like inviting people to a wedding when the guy hasn't proposed to the bride. Amazing that one needs to explain things using crayons these days.

Apple didn’t offer any product. They entered into an agreement with this company where the company would provide it with sapphire. The company failed to meet its promises. No public announcements were ever made by apple promising anything to do with this.

 

[shadowmatt]

I think you may have your rose-colored glasses on. Jobs was never able to 'convince' Freescale(Motorola)/IBM to make a G5 processor for laptops.

I think you need to put glasses on

He is talking about the Intel 5G chip, a new chip for 5G phones that Intel just abandoned not an old cpu

 

[0924487]

He has a YouTube channel with 3.6 million subs.... makes minimum 200k a year if he does sponsorship/merch/promotion/affiliates you can 3x that. And that is a very conservative estimate.

3.6M sub is about 40M views per year.
40M views is about 120M impression and 5M ad clicks

Is we use the average $2 per 1k impression and $25 per 1000 ad clicks.

That is 120K x 2 + 5K x 25 = $365000 per year

Income tax rate is around 48%