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  • Apple Finds GTAT Bankruptcy "Surprising," Currently Figuring Out its Next Steps


    In Apple’s recent public statement regarding the GT Advanced Technology’s bankruptcy filing, Apple spokesman Chris Gaither said the following to Reuter expressing that the Cupertino California company was surprised by the filing and that it is now figuring out its next steps:

    We are focussed on preserving jobs in Arizona following GT's surprising decision and we will continue to work with state and local officials as we consider our next steps.
    For those of you who aren’t very knowledgeable about the topic, GT Advanced Technologies previously fell into hard times when Apple withheld a final $139 million prepayment loan, which was part of what was roughly a $578 million package set to help GT startup operations at the Mesa, Arizona sapphire production plant.

    Apple typically doesn’t comment on dealing with its partners but it may have felt compelled to address the controversy since it was supposed to work closely with state officials to build a new sapphire manufacturing facility in Mesa, Arizona. To make matters worse, Governor Jan Brewer boasted about the deal at the time, stating it would create at least 700 “quality” jobs in the first year alone as well as an additional 1,300 construction jobs responsible for helping build out the facility.

    The Cupertino California company opted not to use sapphire for the display on the iPhone 6 lineup and made no commitment to purchase sapphire from GT. As a result, the sapphire producer quickly started to run out of cash and with repayment on the Apple loan set to start in January if not sooner, GTAT found itself needing to enter bankruptcy protection in an effort to reorganize its business.

    As of right now, KGI Securities analyst, Ming-Chi Kuo claims GT’s bankruptcy shouldn’t have any impact on the Apple Watch, which is still said to be using sapphire on some of its models. If GTAT can’t produce the require sapphire, Apple still reportedly has the ability to obtain the product from multiple sources.

    We’ll have to wait and see what happens with the whole situation.

    Source: Reuters via MacRumors
    This article was originally published in forum thread: Apple Finds GTAT Bankruptcy "Surprising," Currently Figuring Out its Next Steps started by Akshay Masand View original post
    Comments 4 Comments
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      I don't think it's a rumor that some models of Apple Watch will have sapphire since the website actually says so.
    1. Akshay Masand's Avatar
      Akshay Masand -
      Quote Originally Posted by SpidermanAPV View Post
      I don't think it's a rumor that some models of Apple Watch will have sapphire since the website actually says so.
      Good catch! Fixed!
    1. Raptor2213's Avatar
      Raptor2213 -
      GT Advanced Technologies previously fell into hard times when Apple withheld a final $139 prepayment loan
      I think you mean $139M - there's a pretty big difference there.
    1. exNavy's Avatar
      exNavy -
      It's too bad that Arizona kissed their butt to get them to open their now bankrupt business here. As a tax payer I don't like giving credits to businesses that already have deep pockets.