GT Advanced and Apple terminate their partnership

24 October, 2014
GT Advanced shuts down a couple of factories and sells off assets to repay Apple $439 million.

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  • ?
  • Anonymous
  • kky
  • 15 Sep 2020

ShadowRipp3r, 25 Oct 2014I honestly don't hold this against Apple in any way , GT Ad... moreOf course you like many would say no blame to apple...

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    • ShadowRipp3r
    • rv3
    • 25 Oct 2014

    I honestly don't hold this against Apple in any way , GT Advanced should not have taken up the contract if they knew they could not deliver.

    Though I will say that I wonder why they terminated the contract with Apple after accepting that huge sum of money though.

      • ?
      • Anonymous
      • ixE
      • 25 Oct 2014

      why close down? Next year iphone can't use sapphire? Just delay one year, losses will be recovered.

        • w
        • wow lol
        • m5g
        • 25 Oct 2014

        sounds like a con....you have 600 emplolyes, a established business and receive $439 million and then you go into bankruptcy ? how the hell do you lose $439 million over night ? its not like they were playing stock market with it, they has one simple task....buy raw materials, make crystals, cut crystals, collect more money, repeat.
        Was the company run by a total r3tard ?

          • ?
          • Anonymous
          • YTd
          • 25 Oct 2014

          Apple should terminate iBend devices first ?

            • i
            • iThought
            • vx6
            • 24 Oct 2014

            I feel sorry to all the employees that is affected, many families will suffer, hopefully Apple will consider them and help them get a new job. :(

              • l
              • lets go
              • Ia9
              • 24 Oct 2014

              AnonD-227986, 24 Oct 2014If there was not enough supply for saphire glass, Apple sh... moreI think you are wrong and here are the MULTIPLE reasons why

              It is down to image and Apple projecting the iPhone as premium (PRICE ONLY) product whilst not actually providing one.

              There is NO other rational explanation that supports another conclusion

              I read up on article that interest me, my assessment

              I guees Vertu phone IMO have caught Apples eye, Apple seeing Sapphire on arguably the most expensive phones an ANDROID phone

              We know VERTU already uses Sapphire glass on some of its phone.

              The problem is NOT Sapphire Glass itself, it is the expense of Sapphire

              So it is OK for Vertu as their phones "Ain't Cheap" so there, buy it if you can afford it

              Corning Gorilla glass is $3 THREE DOLLARS per phone
              Sapphire Glass cost 10 times more $30 THIRTY DOLLARS per phone

              Vertu phones cost typically $5000 plus


              So Vertu can either passes on the extra $27 to its customer or take a $27 hit per phone which isn’t going to affect profits or put a buyer off

              My take is this is Sapphire is "show only” if Vertu luxury and all that uses Sapphire well Apple also

              Apple iPhones are premium (PRICE ONLY) devices
              Apple jumped on the Sapphire bandwagon

              The problem was NOT Sapphire Glass itself but Apple wanted a "cheaper version" of Sapphire Glass!
              http://www.gsmarena.com/newscomm-9353.php

              GT produced this version of Sapphire Glass (sapphire glass "lite") which is then sent to the finishers.

              Each piece of Sapphire Glass has to be added to the display manually in a ‘isolation’ room ensuring no dust or any other matter get trapped

              This is the low yield reported.
              Afaik is NOT a production problem, but may be in part using a cut down version of what Vertu adds to its phones

              Prior to the display being added the sapphire glass must be joined to the display and this is done manually

              http://www.technologyreview.com/news/512411/your-next-smartphone-screen-may-be-made-of-sapphire/

              I note that Apple did NOT go back to Gorilla Glass using shatterproof glass instead.

              This is all to protect the Apples strict profit margin

              The "switch" to Sapphire was so it could join the elite, whilst offering a product that includes the word Sapphire and clearly NOT Sapphire

              It should come as no surprise to find out the origins of the iPhone 6, an "original" and the "copy"
              http://www.gsmarena.com/compare.php3?idPhone1=4910&idPhone2=6378

                • ?
                • Anonymous
                • I5i
                • 24 Oct 2014

                As an ex-GT Advanced Technologies employee who was laid off this week; how exactly is Apple going to help find a new job?? I don't believe they have my contact information. Maybe they'll help me get a job in the Apple store at the mall.

                  Aym007, 24 Oct 2014One thing you are taught in business school (at least in th... moreIf so GTAT did not deserve to exist as a company, especially their executives, managers and expert engineers. You cant expect your customer to teach you, how you should make profit after getting order and loan from your customers! I love this business model and want to be the CEO of such JV, all I have to do is blame my customer for my inability while cashing millions! Third rate capitalism without semblance of shame!

                    • D
                    • AnonD-68031
                    • LC4
                    • 24 Oct 2014

                    i think apple squeezed too much price to gt and they never thought that this contract will take them to bankruptcy and finaly to chapter 11. i feel sorry for so many workers who have lost their jobs, so many familys will suffer because of this.

                      • ?
                      • Anonymous
                      • LC4
                      • 24 Oct 2014

                      i think apple squeezed gt too much in price for sapphire crystals, and gt accepted contract without considering that this may finaly drive them to bankruptcy and chapter 11

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                        • Aym007
                        • EJa
                        • 24 Oct 2014

                        One thing you are taught in business school (at least in the MBA program) is that it is your responsibility when you are giving a contract to another company to make sure that they are capable (technology, facilities, experience, management) in providing you with what you ask of them.

                        Furthermore, you have to be with your contractor step by step making sure that they are meeting their time table and the goals you set for them. Companies embed their own employees within the contractor's facilities in manufacturing contracts to make sure the time table is met each step of the way and help out when technical knowledge is needed. After all, this is Apple and their motto is Designed in the USA.

                        So if GT Advanced failed in an epic fashion, and trust me this is an epic failure when you have to declare bankruptcy and sell your facilities, Apple's management has to be blamed by it's shareholders because they should have made sure that their contractor is capable before they handed them hundreds of millions.

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                          • AnonD-183154
                          • 9Aw
                          • 24 Oct 2014

                          Would be easier just to buy out GT Advanced. Apple really don't like to spend money buying unlike Google that buys everything in sight.

                            • ?
                            • Anonymous
                            • q8Q
                            • 24 Oct 2014

                            AnonD-298939, 24 Oct 2014Its a slow day so give me a break. But come on, Zerg's &... moreIt was actually a pretty good solution. Much more responsible and intellectual than abandoning them for bankrupt.

                            Plus there would have been an iphone 6 model with sapphire still which they would have charged dearly for earning them higher profits than their already insanely over priced devices.

                              • D
                              • AnonD-227986
                              • mjP
                              • 24 Oct 2014

                              AnonD-298939, 24 Oct 2014Its a slow day so give me a break. But come on, Zerg's &... moreNo. I ment GT Advanced would still have to provide Apple with saphire screens IF they have someone to buy the screens.

                              So
                              APPLE gets their spahire screens, in time = WIN.

                              GT Advanced have orders and , in time they grow and sell more and more screens for more and more devices = WIN.

                              The State wins from TAXES.

                              How will Apple recuperate the money they invested now ? From selling GT Advanced factory at a lower price ?

                                • D
                                • AnonD-53653
                                • 61A
                                • 24 Oct 2014

                                Poor GTAT, they have a prospect but now sucked out by Apple

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                                  • Babushka
                                  • n3a
                                  • 24 Oct 2014

                                  Apple will release soon a special edition Black Slate color of iPhone 6 Plus with Sapphire glass and 2GB of RAM.

                                    • ?
                                    • Anonymous
                                    • tCQ
                                    • 24 Oct 2014

                                    Poor Apple, going to this and that company, anything to avoid relying on Samsung for their components. In the end, they'll still go back though.

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                                      • AnonD-320848
                                      • MiB
                                      • 24 Oct 2014

                                      well im sure that other companies would love the sapphire tech? but apple could have done more and they could have stopped payments sooner. yes its sad that there are so many lives affected not only 50 but also the families of those peop;e and other people as well. It does look lit GT bit off more than they could do but apple should have said hey lets look at this closer.

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                                        • AnonD-318966
                                        • 3I1
                                        • 24 Oct 2014

                                        AnonD-298939, 24 Oct 2014Its a slow day so give me a break. But come on, Zerg's &... moreActually I don't think that Zerg's idea of a "Iphone 6 Sapphire" edition is bad at all. Just call it a special limited edition, charge 100$ more, and have fanboys drool all over them.
                                        That way it wouldn't have been a complete loss. Sure Apple would probably still have been entitled to ask for some of the money they paid in advance back, but maybe, just maybe, they wouldn't have pushed GT Advanced into bankruptcy.

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