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's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
Following its iPhone 16 event on Monday, Apple shared a PDF on its website with a list of all new features and changes coming with iOS 18. The list includes many features that were already announced, including Apple Intelligence, new customization options for the Home Screen and Control Center, a redesigned Photos app, several enhancements to the Messages app, a Passwords app, and more....
Will you be skipping the iPhone 16 Pro and waiting another year to upgrade? If so, we already have some iPhone 17 Pro rumors for you. Below, we recap key new features rumored for the iPhone 17 Pro models so far: 24MP front camera for all iPhone 17 models: All four iPhone 17 models will feature an upgraded 24-megapixel front-facing camera, according to Apple supply chain analysts Ming-Chi...
Pre-orders for the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max are set to begin on Friday, September 13 at 5:00 a.m. Pacific Time, with the new devices set to become available in multiple countries around the world simultaneously. We've compiled pre-order times for various countries to help MacRumors readers be among the first to order. This list isn't...
Apple began accepting pre-orders for all four new iPhone 16 models today, and shipping estimates for the iPhone 16 Pro and Pro Max on Apple's online store in the U.S. are already beginning to slip into October for many configurations. As of 6:45 a.m. Pacific Time, the iPhone 16 Pro and Pro Max were facing a 2-4 week shipping delay for some configurations on Apple's online store, with...
iOS 18 will be released to the public on Monday, but the first Apple Intelligence features will not be available until iOS 18.1 is released in October. Apple Intelligence features will continue to roll out in iOS 18.2 and beyond, with the expected roadmap outlined below per Apple's website and rumors. Apple Intelligence requires an iPhone 15 Pro model or any iPhone 16 model, and it will...
