GT Advanced Technologies, the company that was supposed to make sapphire screens for the iPhone early this decade, has been charged with misleading investors by the SEC.
The SEC’s investigation found that GT and its CEO violated antifraud provisions of the federal securities laws as part of its deal to supply Apple with sapphire. After failing to meet certain performance requirements, GT caused “significant investor harm” by reclassifying over $300 million in debt to Apple. Sadly, the company’s punishment is pretty much just a slap on the wrist.
Despite seemingly dropping plans for a sapphire display for the iPhone, Apple continues to be haunted by its brief venture into manufacturing using the material.
In addition to Apple’s sapphire supplier GT Advanced Technologies going bankrupt several years back, this week Apple was handed a lawsuit by manufacturer Hebei Hengbo Fine Ceramic Material. The company claims to have fallen out with Apple over terms for a contract involving high purity alumina melt stock, a material used as part of the sapphire process.
Apple says it has no plans to manufacture high-tech servers in the USA, despite a recent report claiming the iPhone-maker applied for permission to do “high-tech manufacturing” at its site in Mesa, Arizona.
The Mesa center was previously the home of Apple’s ex-sapphire supplier that went bankrupt in 2014. Instead of seeking permission to manufacture on the site, Apple clarified that it is actually just applying to renew the original Foreign Trade-Zone status of the location that brings some big tax benefits.
We may not yet have sapphire glass on our iPhone screens, but Apple has been claiming to use the ultra-hard material for its iPhone camera lens since 2013’s iPhone 5s.
However, those claims are being called into question by a new durability test carried out by YouTuber JerryRigEverything, who compares the hardness of the iPhone 7 camera lens with the sapphire display of a Tissot sapphire watch — and finds that the iPhone camera lens scratches far more easily.
Apple has had its problems with sapphire manufacturers before, but not with its latest supplier, which not only stands as the largest sapphire manufacturer in the world and one of the few that are showing any kind of operating profit — but also just churned out the world’s first 300lb synthetic sapphire crystal.
It would be easy to think that Apple’s sapphire iPhone dreams went down the pan when GT Advanced Technologies went bust, but Apple’s nothing if not persistent.
Today, the U.S. Patent and Trademark Office published a patent application from Apple describing a new method for manufacturing sapphire displays by irradiating the sapphire crystal and then using a laser and “second gas medium” to slice it into the super-thin sheets Apple requires.
Apple will consume 18 percent of global sapphire ingot output making the displays for the Apple Watch, according to a new report coming out of China’s supply chain. This adds up to a whopping 30.8 million millimetres of two-inch (diameter) sapphire ingots in total.
GT Advanced Technologies’ attempts to make sapphire iPhone screens for Apple may have ended in disaster, but that’s not stopping GT senior execs from asking for millions to be paid out in bonuses.
Because the company filed for bankruptcy protection back in October, any bonus program needs to have the signature of a judge in order to be legally binding. GT is requesting a hearing in January, although it admits there is likely to be opposition.
The bonus program would cover 9 unidentified senior executives, and could add up to $2.275 million if all the necessary targets are hit. A second bonus proposal would pay a total of $1.4 million to an additional 28 people.
Foxconn might get in on Apple’s sapphire business for future iPhones, according to a source speaking with Cult of Mac.
While Foxconn has no actual experience growing sapphire, it is reportedly very interested in the material, and has been actively pursuing various sapphire related patents over the past several years.
I recently decided it was time to get a proper desktop computer. I needed it predominantly for work, but I wanted it to be powerful enough to play the latest games in 1080p without worrying about stuttering or terrible frame rates.
The new Mac lineup didn’t offer a perfect fit — the Retina 5K iMac was too expensive, and the new Mac mini simply wasn’t powerful enough — so I set myself a goal: To build a gaming machine with a dedicated video card, capable of running OS X, for around the price of a Mac mini.
I set a budget of $650 for my build. That’s $150 more than the base model Mac mini, but $50 less than the midrange model. In this piece, I’ll take you through the components I purchased and why I chose them, and how I put them all together. Next week, I’ll show you how I installed OS X to turn my DIY gaming rig into a Hackintosh.
Corning’s relationship with Apple looked doomed earlier this year. Having manufactured the touchscreens for every iPhone since 2007, the Gorilla Glass bosses were all but sure they were being ditched in favor of synthetic sapphire crystal, set to be supplied by Apple’s hot new partner, GT Advanced Technologies.
But while Apple’s affair with GT has imploded spectacularly, Corning is back on Cupertino’s crush list after stepping in at the eleventh hour to create super-sized displays for the iPhone 6 and 6 Plus. Now Corning is convinced its latest technological advance — Gorilla Glass 4, its toughest version yet — will banish sapphire suitors for the immediate future.
“Sapphire is a really, really nice material that’s very good for reducing scratches,” Dave Velasquez, Corning’s director of marketing and commercial ops, told Cult of Mac. “However, we feel very strongly that glass is the best material for touch panel cover glass. When you weigh up everything from cost to drop-testing, to the amount of energy that’s needed to make it, in our opinion Gorilla Glass is clearly the best material to use.”
Now photos published by the Wall Street Journal show some of GTAT’s sapphire errors, made just days before Apple signed a deal for the company to produce sapphire displays to be used in next generation iPhones. The 578 pound sapphire cylinders — known as boules — featured multiple flaws, which rendered the majority unusable.
While Apple certainly pushes its manufacturers hard to seemingly achieve the impossible on tighter and tighter profit margins, the picture that emerges from the WSJ article is of GT as a chaotic company, struggling from the very start to fulfil Apple’s expectations.
Apple and its former sapphire supplier GT Advanced Technologies have stayed quiet about their disastrous relationship, but newly unsealed court documents reveal that the two companies never had a chance of making things work.
Judge Henry Boroff ordered the sealed documents to be opened on Tuesday, and one of the affidavits from GTAT CEO Daniel Squiller claims Apple used a “bait-and-switch” strategy that was massively one-sided. When GTAT balked at Apple’s terms, execs were told to stop trying to negotiate and “put on your big boy pants and accept the agreement.”
Apple’s sapphire ambitions with GT Advanced Technology have been a complete disaster. But even though the plan to turn Mesa, Arizona, into the Sapphire Capital of the West failed, Apple executives are still looking for a way to repurpose GT’s new factory.
The city of Mesa and Arizona Gov. Jan Brewer bent over backward to bring Apple to the Grand Canyon State, but now that GTAT plans to shut down operations, Apple says it’s still committed to helping the area.
The start of any innovative business should be identifying a service that the current market leader in the sector is not supplying.
With Apple’s failure to provide sapphire displays for its latest iPhones — thanks to the spectacular collapse of now-bankrupt supplier GT Advanced Technologies — you’d think that other smartphone makers would be climbing over one another to bring sapphire-enhanced smartphones to market; demonstrating that they can do what Tim Cook and his billions of dollars weren’t able to.
Which is why it’s something of a surprise (or perhaps not!) to hear that Apple’s troubles with sapphire displays has pretty much discouraged other companies from trying the same thing.
Apple’s bankrupt sapphire supplier GT Advanced Technologies might have stayed quiet about its reasons for the bankruptcy, but a few details are nonetheless starting to emerge.
Two of the most intriguing tidbits concerning the case regard the cost of sapphire production for GT Advanced Technologies, and the financial penalties Apple imposes on any supplier who leaks information about future products.
We’ve witnessed a quick unraveling of GT Advanced Technologies (GTAT), Apple’s main sapphire supplier, since the company suddenly filed for bankruptcy earlier this week.
New court filings indicate that GTAT wants to take legal action against Apple for its “oppressive and burdensome” terms. The sapphire maker also plans to shut down its Arizona plant by December 31st, which leaves Apple’s sapphire production in limbo. The Arizona plant shuttering will also result in the loss of 890 jobs.
With GT Advanced Technologies asking permission to close down its Arizona factory after less than a year, it’s a fair question to ask where exactly Apple plans to get the sapphire displays for its forthcoming Apple Watch.
Earlier this week, KGI analyst Ming-Chi Kuo said that the bankruptcy filing wouldn’t affect Apple’s forthcoming wearables debut. According to a new report from Digitimes, the reason for this is that Apple has a backup plan in the form of two other sapphire cover suppliers besides GT Advanced: the South Korea-based Hansol Technics and China-based Harbin Aurora Optoelectronics Technology.
GT Advanced Technologies is apparently getting out of the sapphire production game, after filing for Chapter 11 bankruptcy protection at the start of this week.
As reported by Re/code and the Wall Street Journal, the beleaguered company is asking the court’s permission to “wind down” operations at its sapphire manufacturing plant in Arizona — and, yes, for those keep track, that does come less than one year after the company first announced its game-changing deal with Apple.
How GT Advanced Technologies could have filed for bankruptcy, despite Apple’s best efforts to prop it up, is still something of a mystery — and it’ll stay like that if the company gets its way.
According to a Reuters report, GT Advanced has requested that the New Hampshire bankruptcy court currently overseeing its case put the kibosh on releasing key documents related to a “third party,” claiming that this would allow it avoid paying damages thanks to confidentiality agreements.
Apple’s plan to put sapphire glass in everything took a tumble this week when its exclusive supplier GT Advanced Technologies filed for bankruptcy, and according to Apple’s spokesman, they were just as shocked as all of us.
In a statement issued this morning to Reuters, the Apple spokesman Chris Gaither said the company was ‘surprised’ by GT’s decision to file for Chapter 11 bankruptcy, but they haven’t given up on its AZ plant yet.
New details have emerged about the surprise bankruptcy protection filing of GT Advanced Technologies, a.k.a. the company that was supplying Apple with its sapphire.
As per the Wall Street Journal, Apple agreed to lend GT Advanced a total of $578 million to help get its large sapphire factory in Arizona up and running, only for Cupertino to withhold the final $139 million payment it was due to make, for reasons which aren’t yet clear, but likely relate to the company’s failure to deliver sapphire to Apple’s satisfaction.
The idea that the iPhone 6 and 6 Plus would have a sapphire display was one of the most widely reported errors leading up to the unveiling of Apple’s next gen iPhones.
But while plenty of time was spent discussing the possibility, very few people made any money through the speculation — except for Tom Gutierrez, CEO of sapphire manufacturer GT Advanced Technologies, which just filed for bankruptcy protection.
According to the Wall Street Journal, one day before Apple revealed its new iPhones wouldn’t feature sapphire screens after all, the boss of the struggling company cashed in more than 9,000 shares of GT stock for an average price of $17.38 — bringing in a total of $160,000.
Since February this year, Gutierrez has sold close to 700,000 shares in his company, valued at more than $10 million.