GT Seeks to Void 'Oppressive and Burdensome' Agreements With Apple, Outlines Sapphire Wind Down Process

[Keirasplace]

Actually, more likely that GT failed to meet quality or quantity that they promised, so Apple wasn't required to buy it. If they satisfied the quality or quantity's stated in the contract, then Apple chose to not buy it, there would almost certainly be a clause in the contract to say they could then sell to other people.

A supplier always have quality requirements in their contract. That way they're not paid for producing utter crap useless to the buyer.

As for Apple not allowing the Sapphire to be sold... If it is not good enough for Apple, will someone want to buy it? Maybe, but It depends on why Apple rejected it. Possibly good for something else than a screen.

As for exclusivity. Apple surely doesn't want GTAT to flood the market with Saphire essentially paid with their own money!!! Sapphire competitors can buy. Since they have a much lower volume, they could actually be satisfied with GTAT's outpout if it is merely a yield issue.

 

[Tech198]

I'm just wonder what happens when that touch screen fails.....

 

[Cartaphilus]

There is such a thing as an unfair contract and with the juicy carrot Apple dangled in front of them, plus they would have no choice but to accept the terms that would be grounds for this defence as such a dominant customer may be in breach of Anti-Trust legislation. Actually with this and Beats/Bose Apple is becoming Mr. Nasty and they might lose some customer loyalty if they don't watch out.

There certainly may be such a thing as a contract that is unfair, but that doesn't render it unenforceable, and certainly it violates no provision of U.S. anti-trust laws. I think you may have been applying certain curious--to U.S. legal minds in any case--provisions of European law.

Here grown-up companies represented by grown-up lawyers negotiate contracts that both parties expect to be enforced. By declaring bankruptcy, however, the situation changes, and provisions of contacts may be modified by the court, or by agreement of the interested parties with the approval of the court. Even in these circumstances, though, there is no application of some subjective notion of what provisions might or might not have been "fair", either when the contract was being negotiated, or as things played out.

Customers buy products from companies overwhelmingly because they believe the product provides them with value commensurate with the price demanded. Very few customers are sufficiently knowledgeable about the the facts, law, or custom and usage of the trade to reach any substantive judgment about how Apple may have behaved in its relationship with GT. Absent a published finding by a master or bankruptcy judge, anyone who would otherwise buy something from Apple but who buys something less desirable from a competitor because of an unsubstantiated charge of "unfairness" has only himself to blame.

Additionally, the facts appear very damaging indeed to the erstwhile CEO of GT who sold stock while in possession of non-public material facts, i.e., that the iPhone 6 would not be incorporating GT products. Unless these sales were pre-programmed in a written order to a broker made when the CEO had not yet known that the death knell of the company had been sounded, I'm afraid life is going to get even more dismal for him. Such a sale would also be indicative of the CEO's character, and anyone who would be both foolish and avaricious enough to even consider such a stock sale is in no position to complain when statements supported only by his testimony are not accepted as true.

 

[-LikesMac-]

Don't ask me why, but...

I'd actually like to see GT lose this whole battle and get destroyed (not literally).

 

[skinned66]

I find income tax burdensome and oppressive. Too bad for me.

 

[betabeta]

Seems like the new larger furnaces obviously didn't work out the way GT thought it would, my guess is the product was inferior at scale, and no where near the quality of the smaller furnaces.

Maybe....

GT: here is your glass

Apple: this is ****, looks nothing like the samples you showed and are contracted to supply, WTF.

GT: no this is fine

Apple: we're not paying for this pile of **** and if the new furnaces are the problem, that's not our problem! get this fixed and fast

GT: top execs, guys no way we can do this and make any money we ****** up! what do we do? cut and run, call the lawyers, Done!

Apple: no way they can produce what that said! we ****** up! what do we do now? First we aren't giving them another dime, and we could be screwed on the furnaces, planB backup suppliers?.

Seems like Apple is screwed and GT is screwed. Business as usual, Apples dream of huge fast supply, busted, GT's dream of piles of cash, busted.

 

[shk718]

I agree! Somebody bet the farm on Apple and didn't come through, and now want to blame Apple for their failures! CEO of GTAT should get the shaft! I just really feel sorry for the workers!

exactly! the workers always get screwed by the moronic decisions the owners make. And this guy cashed in millions - i'm waiting for the investigation.

----------

Look, I get what you're saying but this isn't that simple. A good business doesn't try to squeeze every last dime of risk out of a partner every time a contract is signed. You need partnerships to work in order to build a lasting business. If GTAT went to bankruptcy over terrible terms from Apple or an abusive contract then that is on Apple quite a bit, who should know better. Personally, however, I think something else is going on.

I thought they had an extremely balanced partnership. Apple paid for the factory and equipment and GTAT provided the "know how". Again, we don't know exactly what happened, but, It seems something went wrong and the sapphire wasn't as good as gorilla glass. Was it a manufacturing error or something with the method. It'll be interesting to find out if we ever learn the specifics. Also, this is lawyer speak designed to make Apple look horrible and GTAT look like a victim. Seems to have worked with many people in this thread - and none of us knows what happened. Good job lawyers - i'll hire them if i ever have the need.

 

[andycarver]

Fishy....

Such a setup. Smells very fishy. If I were apple or GT I wouldn't want an internal investigation into this. Support the workers.

 

[tbrinkma]

Didn't they agree for these terms when they signed up to get half a billion dollars from Apple? They are just using bankruptcy to get away from keeping their part of the deal.

That is what it's starting to look like. If the contract is voided in its entirety, they will get to keep the money from the loan Apple gave them, *and* the sapphire furnaces that the loan was used to purchase, and which were collateral against said loan.

 

[Piggie]

$50,000,000 fine by Apple?

http://www.gizmodo.co.uk/2014/10/gt...-reveals-apples-50-million-penalty-for-leaks/

 

[megadon]

I'd actually like to see GT lose this whole battle and get destroyed (not literally).

http://www.forbes.com/sites/gordonkelly/2014/10/13/iphone-leaks-and-apple-secrets/?partner=yahootix

Moreover GT has appealed and won the right to reveal all clauses of its previously redacted confidentially agreement with Apple “in the interest of their creditors, equity holders and other stakeholders, as well as to ensure an open, transparent and fair process”.

This is gonna get juicy!

 

[phinsup]

You do realize that sometimes people say things they don't mean, right? They don't *really* intend to "wind down operations". They intend to "wind down operations" and then mysteriously find money from another company providing a higher profit margins, and go ahead with operations. C'mon, you can't be that naive. I can tell you right now, they probably planned this whole thing from the beginning. This is the way a sociopath runs a business, and they'll need to take it up the arsehole as an example to the industry as a whole.

This isn't about "morality", it's strictly business, just like in the mafia. This company must be forced to uphold their contract in one form or another, even if ownership is transferred to Apple, or management is removed.

Yea you sure nailed it.

 

[OatmealRocks]

Yea you sure nailed it.

No he didn't.

 

[businezguy]

Yea you sure nailed it.

You were right, I was wrong.

 

[Mactendo]

Sure, really stupid idea from Apple.
Get Gorilla glass to cover the camera and Touch ID too.. The iPhone 6 and plus would had at least one more millimeter protruding..

That whole story was about using sapphire for screen.