The struggle between GT Advanced Technologies and Apple Inc. takes a spin when the court unsealed the papers of agreement between Apple and GTAT. The deal was till date kept confidential owing to business concerns, but at last, the judge decided to make the papers of the deal public as GTAT stood beside its bankruptcy claims. According to the officials of GT Advanced Technologies, Apple Inc. had played a classic ‘bait and switch deal’ with them, which has in turn led to the companies’ bankruptcy. The appeal made by GTAT states that Apple Inc. used its position to force a lot of decisions on the company.
Amidst the various allegations, GTAT has also stated that Apple Inc. used different ways to work for personal gains. On the other hand, Apple Inc. had remained silent for a long time now. Now when the deal papers have been made public, the iPhone maker has come up with words referring to itself as being one of the most helpful partners.
According to the statement made by Apple, the company had gone beyond means to support GTAT. Apple Inc. also claims that in spite of repeated failures from GTAT’s side, funds were allotted such that they could get the viable sapphire from the company. Apple has also stated that, the initial issue arose when GTAT failed to produce the promised 262 kg boule sized sapphire.
It will be interesting to see how the case turns out as Apple has now decided to break free. The stats suggest that the iPhone makers has already payed approximately $400 more that the proposed cost of $700 million. It was till the filing of the bankruptcy claims that Apple was still willing to work with the company to yield out an amiable situation for both.
Earlier in mid-October, GT Advanced Technologies announced that it would lay off 727 jobs at Mesa, Arizona plant that would be completed by December 15, following the filing of bankruptcy. The sapphire glass supplier for Apple has been de-listed from the NASDAQ stock exchange. The company has issued notices to 524 production line workers, 108 technical jobs, 70 managers and 25 administrative positions, according to Linda Luman, GT’s VP of human resources
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