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Apple's Sapphire Partner GT Advanced Technologies Files for Bankruptcy
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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.
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.
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.
When did Apple or GT ever disclose they were producing sapphire for the new iPhones displays? I know there were rumors about it but that doesn't mean it for sure was targeted for the iPhone 6.
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)
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.
Just a nasty rumors that enables another Apple rumor of another Apple product having a low yield output and will be in short supply when product launched a la Apple Watch which increases curiosity and demand because Apple knows people don't want to miss out! Expect long lines at your local Apple store on launch day! 
Thats exactly what I thought, would be a nice way for them to pick them up at a discount
Chapter 11 is a protection, a "last resort" to STAY in business. Its aim is to calm down investors/debtors by guaranteeing that debts will be paid. Without such protection, banks/investors/vendors would stop giving credit to a company. With the protection, there is enough guarantee to keep investing $$$ in the company.
Look at it this way.
You owe $10000 to VISA because you decided to buy a maxed out Mac Pro, but you can't pay your debt this month. First thing that happens to you? Your credit line is closed, no one can help you out, your credit score is destroyed. In other words, you're financially f-ed.
Getting a "Chapter 11" bankruptcy protection means that a higher entity (court) will guarantee that VISA will get its money back one way or another. This allowes VISA itself to "extend" your debt over time, or to find other solutions that do not damage you. VISA, as your creditor, WANTS your money, it does not want to put you out of business so your business can stay alive while it "restructures". However, VISA itself it needs some level of reassurance, and that is exactly what Ch. 11 is for.
I see this as a great, albeit unintended, opportunity for Apple. They can purchase GT for pennies on the dollar when it comes out of chaper 11.
Not if GT missed the deadline. Apple definitely had a demand that a certain amount of screens be available by a certain time (so as not to delay production). If GT couldn't hold up their end, there is no contract.
I still don't think it was Apple's first choice to have "ion strengthend glass" (lol), but GT missed a deadline and Apple had to move or risk delaying the launch.
Yup. It's entirely possible for all creditors to get paid under Chapter 11. It allows debtors to reprioritize their debts and gives them a little reprieve in the form of the automatic stay. It's not like Chapter 7 where the business is completely insolvent and the business sells its assets in a fire sale.
So it is GT that broke their part of the contract .... They over promised and failed.
If Cook isn't worried, I'm not.
GT's market cap is $1.51 billion at the time of this writing. That's chicken feed to Apple. If their internal new product roadmap depends upon sapphire and they were the least bit concerned about GT's financials, they could just buy the company, lock, stock, and barrel.
In fact, beforehand they could write a press release like this: "We've been looking forward to a great relationship with GT for our new products, but they are one of many potential providers of raw materials for our screens. Rest assured that Apple products will be made to the highest standards..." (blah, blah, blah).
The tepid compliment + mention of other vendors = a further drop in GT stock price. Apple buys when GT trades for $7/share rather than $10.98 (at this writing).
GT's market cap is $1.51 billion at the time of this writing. That's chicken feed to Apple. If their internal new product roadmap depends upon sapphire and they were the least bit concerned about GT's financials, they could just buy the company, lock, stock, and barrel.
In fact, beforehand they could write a press release like this: "We've been looking forward to a great relationship with GT for our new products, but they are one of many potential providers of raw materials for our screens. Rest assured that Apple products will be made to the highest standards..." (blah, blah, blah).
The tepid compliment + mention of other vendors = a further drop in GT stock price. Apple buys when GT trades for $7/share rather than $10.98 (at this writing).
Chapter 11 is a chapter in a book usually after Chapter 10..
Either Tim is a genius or a total moron!! Tim could look really clever and buy GT for $1 and the related costs, or missed the boat and some other company recently sued by Apple, for a product similar to the iphone, based in South Korea, and be forced to pay OTT prices for screen glass....I suspect Tim was too busy with the apple-watch and fashion models in Paris to see this coming!!
Either Tim is a genius or a total moron!! Tim could look really clever and buy GT for $1 and the related costs, or missed the boat and some other company recently sued by Apple, for a product similar to the iphone, based in South Korea, and be forced to pay OTT prices for screen glass....I suspect Tim was too busy with the apple-watch and fashion models in Paris to see this coming!!
The only people this is really going to effect are stock holders as the stock price has been tanking.
I never thought the iPhone would get a sapphire display and instead expected this partnership to be for an Apple Watch product and various iPhone components. I still believe that. Perhaps this issue, if it has anything to do with Apple at all, has more to do with the Apple Watch being behind schedule. It's all speculation at this point though. Again, perhaps the Watch isn't running behind at all according to Apple's internal schedule, and perhaps this isn't related to Apple at all, but I've just never been wholly convinced that the iPhone 6 was set to receive a sapphire screen.
More likely GT convinced them that this would work for phones but testing proved it would not. Which would explain the sudden departure of the sales guy who sold this to Apple.