GT Advanced Publishes Report on Its Poor Relationship With Apple
David Curry | | Oct 29, 2014 08:00 AM EDT |
GT Advanced filed for Chapter 11 bankruptcy a few weeks ago, but Apple has made sure the sapphire glass manufacturer keeps details about their relationship quiet.
The demise of GT Advanced Technologies is still hidden under NDA agreements and other legal terms Apple made the sapphire crystal glass manufacturer sign, before they partnered in a business agreement.
CEO of GT Advanced Daniel Squiller has added some input into the proceedings, claiming Apple had GT Advanced on a tight schedule and did not fund more money into the production of sapphire crystal glass - forcing the manufacturer to spend its own.
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After GT Advanced met with Apple executives to discuss the situation, Apple put forward several options, none of which were helpful to the situation. This cost GT Advanced over $900 million in the long-term, with Apple only investing $400 million
Apple also pushed GT Advanced to new manufacturing specifications, leading to delays in manufacturing the product. This derives from Apple's push for a thinner sapphire crystal display - something GT Advanced spent months working on.
When trying to acquire advanced payment, Apple treated GT Advanced the same way they would Foxconn or Pegatron. This was a big mistake on Apple's part, with GT Advanced setting up a facility in Mesa, Ariz. just for the production of Apple sapphire glass.
The bankruptcy filing has cost 1,300 workers their jobs, but Apple has said they will endeavor to get them new ones. It looks like while Apple's hard pushing attitude works on the Chinese manufacturers, GT Advanced wanted more from the deal - while Apple slapped on extra contracts, issues and deadlines.
This could hurt Apple's ability to negotiate deals in the future, especially with American companies. If Cupertino is known for pushing their manufacturers out of business, it is going to be hard for them to employ U.S. companies.
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