I completely agree with you, actually. I'm just saying that I understand why people would look at Apple's actions and classify them as aggressive. At the end of the day, GTA was done in by their own decisions. Sad for the rank and file employees, of course.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
GT Advanced COO: Apple Told Us 'Put On Your Big Boy Pants and Accept the Agreement'
- Thread starter MacRumors
- Start date
- Sort by reaction score
I completely agree with you, actually. I'm just saying that I understand why people would look at Apple's actions and classify them as aggressive. At the end of the day, GTA was done in by their own decisions. Sad for the rank and file employees, of course.
Not true. If you do good by Apple, Apple will do good by you. If you can't produce, Apple isn't going to carry you.
Now, if you do good OR bad by Samsung, they will copy what you do and ruin you and then claim it was all their tech anyway.
Like the other rabid fanboys on this forum, you've missed the point. GTAT handed Apple the reins. Apple ran the carriage off a cliff.
In this case and only this - Apple is going way out of their way (for political reasons) to help those employees out. The facilities that everyone works at is still open and NOT wound-down as first demanded by GTA. (IE the doors aren't locked and the employees are not SOL on collecting a paycheck). Apple owns that building and is providing GTA a lease for an additional YEAR FOR FREE! This is on top of the 50% haircut Apple is taking on the loans. And we're not even including daily operations cost that Apple paid for for the past 1.5 years.
Again the employees still have a job and are getting paid - by Apple. GTA is bankrupt remember - they do not have money to pay the employees.
Once the declaration of bankruptcy papers are signed. At that moment - technically - are the employees no longer working for the company for money. Any work done after the moment of bankruptcy filing is for free.
Worse yet - in most bankruptcies - prior weeks (up to 2) are sometimes not paid. Again money goes to creditors.
I can tell you, the state of Arizona is thankful to Apple, as the employees still have a job and will still be paid for a year. Instead of going on unemployment.
Apple technically went way beyond what they were legally supposed to do.
Remember it was GTA that requested an emergency motion to wind-down the plants immediately. And declare bankruptcy when in fact the company is net-POSITIVE in assets! Think about that for a moment. They have more than enough assets! So why did they cut and run - and "encounter" a free-cash-flow problem?
And then at the same time, why did they file with the SEC paperwork to cash-out their stock? Remember CEO made $10 million. That's why the SEC is investigating.
Anyone who does not see why/how GTA is responsible or wrong - does not understand business.
I wouldn't say Apple had zero risk.
Are you saying they made no R&D investment or logistical planning around the goal of using the sapphire that was to be produced?
If they planned on using it for iPhone screens, didn't they have to source the replacement material in a timely manner?
Just in time manufacturing is hardly zero risk.
Hmmm...
Steve Jobs hasn't really been dead that long - and already Tim Cook has succeeded in turning Apple into the next Microsoft.
Steve Jobs hasn't really been dead that long - and already Tim Cook has succeeded in turning Apple into the next Microsoft.
Not really. The GT guys did a pretty good job. For all the talk of money from Apple, Apple DIDNT LOAN THEM ALL OF THE MONEY promised up front. In fact GT slammed the door in Apple's face with Apple still holding a check. They had set a limit on expenses of $85m cash to "bailout". Apple left them hanging on that last loan payment more than 30 days... And Apple didn't follow thru on PLACING ORDERS for Watch material..
At the point Apple didn't announce a release for Watch these guys knew they were screwed. Another $130m isn't going to hold the company until March or April... So they shut the doors with cash still in the bank. Why would GT go ANOTHER$130m in debt? Their intentions seem pretty good in that they clearly limited APPLE's risk by not taking the money. That's EXCELLENT BUSINESS. Apple by delaying cash GT is already paying interest on to the company on scheduled dates, clearly Apple is backing ANOTHER pony in the sapphire race, or no sapphire at all.
I think Apple put the brakes on when certain milestones had not been met. GTAT was having problems as early as February. I believe GTAT was already on the way to BK and still willing to take final loan payment, however Apple obviously knew milestones were not being met(Feburary), and held back payment, forcing earlier BK filing.
I really feel this CEO/COO knew for quite some time they would fall short, strung Apple along while selling off stock and put plan B in motion. Let's not forget what the CEO/COO walked away with in their own pockets!
The above is my opinions only!
I really don't think Apple needs a defense on this, I think the actions of GTAT's CEO/COO pretty much tell the story for me, IMO!
It's beginning to sound like the CEO and COO of GTAT didn't really care how bad the deal was or if it was sustainable.
They knew once word got out about the partnership with apple the stock would go up. They seemed to have made their money, even if the company doesn't make it.
They knew once word got out about the partnership with apple the stock would go up. They seemed to have made their money, even if the company doesn't make it.
Apple is rotten
You must be joking or just ignorant to apples business practices!
Thanks to apple many hard working people have just lost there jobs, and I don't find that amusing.
----------
Is it really? Or are you just another victim of the latest Apple TV ad? I know for a fact that the the people who just lost there jobs are not buying into Apples inferior products any longer. I could name 3 phones alone that were released months ago with better specs than the new IPHONE 6. The perfect Apple customer is one who is uneducated.
----------
Buy a Samsung
----------
You are so wrong mate. Apple is nothing but a bully to its suppliers. Do your research and take off that Halo you placed on this rotten Apple.
A company trying to make apple look bad? This is new.
You must be joking or just ignorant to apples business practices!
Thanks to apple many hard working people have just lost there jobs, and I don't find that amusing.
----------
Is it really? Or are you just another victim of the latest Apple TV ad? I know for a fact that the the people who just lost there jobs are not buying into Apples inferior products any longer. I could name 3 phones alone that were released months ago with better specs than the new IPHONE 6. The perfect Apple customer is one who is uneducated.
----------
Buy a Samsung
----------
I think Apple put the brakes on when certain milestones had not been met. GTAT was having problems as early as February. I believe GTAT was already on the way to BK and still willing to take final loan payment, however Apple obviously knew milestones were not being met(Feburary), and held back payment, forcing earlier BK filing.
I really feel this CEO/COO knew for quite some time they would fall short, strung Apple along while selling off stock and put plan B in motion. Let's not forget what the CEO/COO walked away with in their own pockets!
The above is my opinions only!
I really don't think Apple needs a defense on this, I think the actions of GTAT's CEO/COO pretty much tell the story for me, IMO!
You are so wrong mate. Apple is nothing but a bully to its suppliers. Do your research and take off that Halo you placed on this rotten Apple.
Apple is getting all their money back from the sale of gtat ' s equipment. And it wast a free loan, it was a loan with many conditions.
Actually the the vast majority of comments are dumping on GTAT and defending Apple. In fact I don't see any comments "blaming Apple for GTAT's failures!"
Apple may or may not be the "bad guys" here but a couple things in the article are troubling.
So what GTAT got eventually was different then what drew them in initially. That sucks. Tell me more.
I put this squarely on GTAT.
Pffft Dickish as hell, but not illegal nor unethical.
Apple very easily could have, but I don't know what the contract states about cost overruns. If anything at all.
Waaaaiit a minute.
This is were Apple starts to look like a bad guy. If you sign a contract with me to do some desktop publishing work because you're good at desktop publishing on iWork, but i then required you to do said publishing on an different program then the one you're used to, you'd be angy. If I then refused to allow you to go back to iWork to finish the job but expected you to fulfill your contract anyways, I would be handicapping you. I would certainly call that burdensome and oppressive. Especially if you went bankrupt in part due to my demands.
^^This is too much. Even Walmart doesn't do that.
Have fun waiting for Apples side of the story. If the last two things are true, my guess is that Apple will just try to make this go away as quietly as possible.
Last edited:
Actually the the vast majority of comments are dumping on GTAT and defending Apple. In fact I don't see any comments "blaming Apple for GTAT's failures!"
Apple may or may not be the "bad guys" here but a couple things in the article are troubling.
So what GTAT got eventually was different then what drew them in initially. That sucks. Tell me more.
I put this squarely on GTAT.
Pffft Dickish as hell, but not but not illegal nor unethical.
Apple very easily could have, but I don't know what the contract states about cost overruns. If anything at all.
Waaaaiit a minute.
If you sign a contract with me to do some desktop publishing work because your good at desktop publishing on iWork, but i then required you to do said publishing on an different program then the one your used to, you'd be angy. If I then refused to allow you to go back to iWork to finish the job but expected you to fulfill your contract anyways, I would be handicapping you. I would certainly call that burdensome and oppressive. Especially if you went bankrupt in part due to my demands.
^^This is too much. Even Walmart doesn't do that.
Have fun waiting for Apples side of the story. If the last two things are true, my guess is that Apple will just try to make this go away as quietly as possible.
I think you have it bang on!
Mate, you need to read the documents released today and put aside whatever blind love affair you have with Apple! Than come back and post an educated comment. Apple is clearly at fault here and many people will not be giving thanks to Apple this thanksgiving nor will they be having a Merry Christmas.
Last edited:
Depends on your definition of "lost"; several top execs managed to sell hundreds of thousands of dollars in personal stock while it was still well above the point they signed this deal with Apple, and they thus far still have their jobs as well, so from that perspective their gamble paid off reasonably well.
Could have been better, but since their stock was already on its way down in 2013, they didn't do at all badly.
Because WAL-Mart is notorious for strong-arming suppliers.
GTAT was like the awestruck young singer who signs their life away because they had dollar signs and Broadway lights in their eyes.
"Wanna be a rock superstar, live large... Big house, five cars..."
Look, businesses are in the business of making money. Don't sign a contract your company can't deliver then whine about it later.
Put on your big boy pants and own up to your mistakes!
My bet is on the pump and dump theory.
----------
Figurative
adjective
1. of the nature of or involving a figure of speech, especially a metaphor; metaphorical and not literal: The word head has several figurative senses, as in She's the head of the company..
Synonyms: metaphorical, not literal, symbolic.
No, the people in charge of the company ran it into the ground. Apple being big and successful does not mean that they're required to be nicey nice to everyone they work with.
I see a lot of grumblings in this thread about Apple being a 'bully', etc, etc, but little saying exactly what people think they did 'wrong'. Did they drive a hard bargain? Of course. But GT seems to have been well aware of the risks and signed on anyway. How is that Apple's fault? There's a lot I criticize Apple for, but I'm more concerned about how they treat their employees overseas and other practices than this.
Last edited:
You know this how? You've had direct business dealings as a supplier to Apple?
Over the whole year they sold A LOT MORE THAN THAT. The C crowd sold millions in stock, seems they set their sales (they have too) as early as february when the first hint of big trouble was occuring. I'd want the SEC to look at this hard.
----------
You must be blind as a bat to say that, or never read and signed a contract with a big tech firm (or any big firm); everything is quasi boilerplate. The only blind people here are the GTAT lawyers and their executive team.