Companies choose not to pursue deals all the time because despite the potential for huge gains, the risks are too great. It seems to me that GT saw dollar signs and chose to ignore the risks. There's no doubt in my mind that Apple negotiated strongly and may have twisted an arm or two; but in the end, GT chose to enter into that agreement. Nobody chose for them.
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GT Advanced COO: Apple Told Us 'Put On Your Big Boy Pants and Accept the Agreement'
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While you're at it read my other comment regarding it as a figure of speech. As a figure of speech it would imply that GT was forced to sign... they were not.
Not sure why everyone is defending Apple. Im sure they are no angels at making these big deals also. You cant just blame the little guy.
There is a reason CEO/CFO/COO/etc have giant salaries and benefits. They are the only ones responcible to ensure business decisions are favorable.
If somebody comes to you offering to buy your product at a loss, it is a bad deal that you should reject. If they offer to buy a whole lot of your product at a loss that make the deal worse, not better!
GT should should put on there big boy pant and admit that they are terrible at managing a company.
We need to stop thinking of companies as people. You can't be mean or bully a company. Stop projecting your sense of outrage or unfairness at these institutions. It is perfectly justifiable for companies to play hardball in ways that would be unethical if done between people.
If somebody comes to you offering to buy your product at a loss, it is a bad deal that you should reject. If they offer to buy a whole lot of your product at a loss that make the deal worse, not better!
GT should should put on there big boy pant and admit that they are terrible at managing a company.
We need to stop thinking of companies as people. You can't be mean or bully a company. Stop projecting your sense of outrage or unfairness at these institutions. It is perfectly justifiable for companies to play hardball in ways that would be unethical if done between people.
The only problem with that argument is that apple wasn't (hopefully) dealing with your average, uninformed, not business savvy consumer. They were dealing with a corporation, that apparently had competent leadership for which I would assume they paid top dollar. Not only has this put a question mark on the analytical ability of GT's leadership in addition to concerns about some of the ethical choices made by them (selling shares etc) but it has also highlighted one important root cause of their state of affairs. And its not Apple !
The point of this is that Apple (allegedly) altered the deal negatively. If Apple had been truthful up front, GTAT might not have signed a deal.
Are people generally surprised that Apple is for the most part being defended on an Apple forum?
That big companies like Apple behave like this is not a surprise; they have the ability to roll over the little guy. I don;t know all of the facts to this so don't really have an idea of who is right and wrong in this case.
It seems a mixture of GT biting off more than they can chew, and getting kicked by Apple while they tried. No single party will come out of this smelling of roses.
A well spun story or two and it adds fuel to the anti-Apple sentiment - the winners are Samsung, HTC etc.
That big companies like Apple behave like this is not a surprise; they have the ability to roll over the little guy. I don;t know all of the facts to this so don't really have an idea of who is right and wrong in this case.
It seems a mixture of GT biting off more than they can chew, and getting kicked by Apple while they tried. No single party will come out of this smelling of roses.
A well spun story or two and it adds fuel to the anti-Apple sentiment - the winners are Samsung, HTC etc.
Not too little guy to go ahead and cash out millions....these executive are ***** thieves and I hope the SEC comes down on them.
"Put on your big boy pants.." So GT said yes. Really? A kindergartener's excuse!
I've nrgotiated billion dollar contracts and have always been ready to walk away from onerous terms demanded by an OEM customer (and there are many.)
But I never wussed-out when a customer became pushy, rather I tabled discussions. I almost always closed the deal that I expected after the "we don't negotiate" customer realized we Would Walk Away Without Signing when it was in our interest to do so.
Hey GT management: How about "Time to strap-on your big-boy balls and say no when you really want to say yes!"
Apple didn't force GT to do anything, management greed and tunnel-vision forced them into the yes corner.
I've nrgotiated billion dollar contracts and have always been ready to walk away from onerous terms demanded by an OEM customer (and there are many.)
But I never wussed-out when a customer became pushy, rather I tabled discussions. I almost always closed the deal that I expected after the "we don't negotiate" customer realized we Would Walk Away Without Signing when it was in our interest to do so.
Hey GT management: How about "Time to strap-on your big-boy balls and say no when you really want to say yes!"
Apple didn't force GT to do anything, management greed and tunnel-vision forced them into the yes corner.
Public relations disaster: Will Apple Shareholders Take a Voice?
I made a reading of the Squiller declaration (the topic of this thread), and wrote the most important parts along with some commentary
Information from GT Advanced's Chief Operating Officer and some commentary from yours truly at
bitDOTly/AppleMalfeasance
Will Apple Investors raise their voices on the matter of Apple's yanking around of our country's leading Solar Technology and Sapphire crystal growth firm?
My friends, I would just copy paste the information here but it is too long.
Best Regards,
RG
disclosure: I am long GTATQ because I believe in the solar and sapphire future that GT Advanced technology is an American representative of to all mankind -- including in products like Apple's plans for Solar charging Smartphones and mobile devices.
I made a reading of the Squiller declaration (the topic of this thread), and wrote the most important parts along with some commentary
Information from GT Advanced's Chief Operating Officer and some commentary from yours truly at
bitDOTly/AppleMalfeasance
Will Apple Investors raise their voices on the matter of Apple's yanking around of our country's leading Solar Technology and Sapphire crystal growth firm?
My friends, I would just copy paste the information here but it is too long.
Best Regards,
RG
disclosure: I am long GTATQ because I believe in the solar and sapphire future that GT Advanced technology is an American representative of to all mankind -- including in products like Apple's plans for Solar charging Smartphones and mobile devices.
in the end it's the CEOs task to make sure he doesn't put his company at risk with some shady deals.
i'm sure apple is no saint in this, but this just sounds like someone who is trying to blame someone else for his bad decisions.
but hey, he got to sell all his shares right before the iphone announcement. i'm sure he has enough money for about anything now and all his workers are the ones paying the price.
i'm sure apple is no saint in this, but this just sounds like someone who is trying to blame someone else for his bad decisions.
but hey, he got to sell all his shares right before the iphone announcement. i'm sure he has enough money for about anything now and all his workers are the ones paying the price.
Do some of you even understand how these lopsided deals are done?
There is generally a significant investment in structuring them, then once they have reeled you in, they pull the rug from under you. You are left with a great opportunity couple with significant risk on one hand, or with no deal and having wasted a ton of money in fees.
So, people make bad deals.... Sharp got screwed by Apple a few years ago and that's why larger vendors were leery of entering into a sapphire deal with Apple. GT Advanced is the one that did not refuse.
This has screwed GT Advanced, but it also shows that Apple is an "evil" partner and will make their future costs higher. This is why Apple is stepping lightly and trying to stop leaks.
Apple is the Walmart of the industry.
Then don't run a business... I am a supplier to Cipla Ltd. They have a huge team of experienced purchase managers... One of the best team in my country... I'm the sole proprietor of my business... I'm thriving... Because I know when to say NO...
My dad taught me at a young age, if you want to play in the big boy sandbox, then be a big boy!!! If you want to cry when you can't handle it, don't play with the big boys!!!
The biggest lesson & advice I ever got, was working in my fathers business, "do what you have to do, with what got to do it with"!
If these COO/CEO's have not learned what "put your big boy pants on" means yet, they deserve every bit of what they got!!!
What did these idiots at GTAT think, Apple was just playing in the kitty pool???
Did they think Apple was just going to piss $500 million away to teach this ding dongs how to swim in the deep end? When you ask to swim in the deep end, you better be ready to do it without Floaties.......
The biggest lesson & advice I ever got, was working in my fathers business, "do what you have to do, with what got to do it with"!
If these COO/CEO's have not learned what "put your big boy pants on" means yet, they deserve every bit of what they got!!!
What did these idiots at GTAT think, Apple was just playing in the kitty pool???
Did they think Apple was just going to piss $500 million away to teach this ding dongs how to swim in the deep end? When you ask to swim in the deep end, you better be ready to do it without Floaties.......
No, it really doesn't. It still looks like GT was in over their heads, nothing more, nothing less.
Where did I hear this before? Oh yeah
Michael Corleone: My father made him an offer he couldn't refuse.
Kay Adams: What was that?
Michael Corleone: Luca Brasi held a gun to his head, and my father assured him that either his brains or his signature would be on the contract.
I guess sometimes it is an easy choice.
Michael Corleone: My father made him an offer he couldn't refuse.
Kay Adams: What was that?
Michael Corleone: Luca Brasi held a gun to his head, and my father assured him that either his brains or his signature would be on the contract.
I guess sometimes it is an easy choice.
I think you over-estimate how much this story will affect customer sentiment one way or another. The folks who will ever hear of this saga probably are less than a fraction of a single percent. The ones who might care are fewer. And the ones who might act are virtually nil.
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Those big boy pants are now full of cash and nervous poop.
I dont agree.
It sounds like GT choose on their own to not talk to anyone else while they were in discussions with Apple, so that's not Apple's fault.
And I doubt that anyone at Apple actually said that "Big boy pants" line. Perhaps yes they said that the terms were not flexible and GT had the choice to take it or leave it but not such a weird and rude phrasing.
and GT was free to say no. They didnt becasue they thought they could fulfill their end and get the money. Now they are mad because they failed.
Yes from their view it is unfair that they couldnt sell to anyone else but from Apple's view it was totally fair. They funded the building of the factory to get sapphire for themselves for their products. They didn't want to be paying for someone else to get materials when they didn't have theirs. But they also couldn't risk that GT couldn't produce and it would screw everything up so they had the out that they could go to others for what they need.I bet if you look at the details Apple did buy everyting that GT produced so it wasn't like there was tons of unsold product sitting around.