GT Advanced's Failure Reveals the High Stakes Risk of Becoming an Apple Supplier
Apple and manufacturer partner GT Advanced parted ways after the sapphire supplier filed for bankruptcy earlier this year. While most Apple supplier relationships are kept secretive, the background story behind the GT-Apple partnership was revealed in a series of court documents filed by GT that were recently made public.
A follow-up report by The Guardian provides an interesting look at how a deal with Apple often can make and sometimes break a supplier. While the report does not introduce any significant new information, it is a good summary of the chain of events and may help some readers get caught up on the story.
In the case of GT, the outcome of its partnership with Apple was not favorable, with the supplier filing for bankruptcy in order to sever the ties between the two companies.
On 9 September Cook showed off the new phones - without sapphire screens. By 10 September GTAT stock was down 25% to $12.78; by Friday 3 October it stood at $11.05. On Monday 6 October, GTAT filed for Chapter 11, and its stock plummeted to $0.80. Trading ceased on 15 October.
Squiller says in the deposition that GTAT put itself into Chapter 11 bankruptcy (which protects a company from its creditors) simply to release itself from the Apple deal - and hence save the company.
The narrative of the relationship by GT paints a bleak picture of Apple and includes allegations of deceptive "bait and switch" business practices on Apple's part and onerous contract terms that led to productions delays. When GT questioned the contract it was about to sign, Apple reportedly confirmed "similar terms are required for other Apple suppliers" and told GT to "put on your big boy pants and accept the agreement."
In the end, GT failed to produce sapphire in suitable quality and sufficient quantity to meet Apple's demands. Instead of a success story, GT is an excellent example of what happens when a supplier goes all in with Apple and fails to scale its production technology fast enough.
Popular Stories
Apple today announced a "special Apple Experience" in New York, London, and Shanghai, taking place on March 4, 2026 at 9:00am ET.
Apple invited select members of the media to the event in three major cities around the world. It is simply described as a "special Apple Experience," and there is no further information about what it may entail. The invitation features a 3D Apple logo design...
Apple is looking for a "breakthrough" with its push into wearable AI devices, including an "AirTag-sized pendant," according to Bloomberg's Mark Gurman.
In a report this week, he said the pendant is reminiscent of the failed Humane AI Pin, but it would be an iPhone accessory rather than a standalone product.
The pendant would feature an "always-on" camera and a microphone for Siri voice...
Back at WWDC 2025, Apple revealed that it was planning to allow CarPlay users to watch video via AirPlay in their vehicles while they are not driving, and the first beta of iOS 26.4 suggests the feature may be nearing availability.
There are several new references to CarPlay video streaming functionality within the iOS 26.4 beta's source code. The feature is not yet visible to users, but...
New trade-in data indicates that Apple's iPhone 17 Pro Max has rapidly become the single most traded-in smartphone.
According to a new report from SellCell, Apple's latest flagship iPhone has quickly risen to the top of the independent trade-in market, accounting for 11.5% of all devices appearing in the top-20 trade-in rankings just months after release. The analysis is based on SellCell...
Apple on Monday invited selected journalists and content creators to a "special Apple Experience" on Wednesday, March 4 in New York, London, and Shanghai.
At an Apple Experience, attendees are typically given the opportunity to try out Apple's latest hardware or software. Following the launch of Apple Creator Studio last month, for example, some content creators attended an Apple Experience...
