Apple is in the market for a new sapphire supplier.
GT Advanced Technologies and Apple have reached an agreement that will see the two companies amicably parting ways, after the sapphire supplier filed for chapter 11 bankruptcy earlier this month.
GTAT was expected to supply sapphire glass for the iPhone 6 and Apple Watch, but after failing to meet performance requirements as part of its contract with Apple, the company failed to receive its final payment of $139 million dollars. The company’s stock tanked after it was revealed that the iPhone 6 uses Gorilla glass, but company’s CEO and COO still made millions of dollars off loading shares ahead of the announcement.
As part of the agreement to end business relations with Apple – who supplied over $500 million to setup GTAT’s sapphire plant in Arizona – GTAT will sell its sapphire furnaces to raise money to pay Apple back.
Apple said it was surprised when GTAT filed for bankruptcy and that it would work to preserve the sapphire plant in Arizona and the jobs it created, but lawyers for GTAT say the deal allows it to wind down operations at the plant and pay incentives to employees.
Source: Street Insider