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.
“We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps.”
GT Advanced Technologies’ stock plummeted shortly after it was revealed that the iPhone 6 uses Gorilla Glass instead of GT’s sapphire. The company’s CEO made $10 million offloading his shares ahead of the iPhone 6 event.
Apple agreed to lend GT $578 million to help get its Arizona sapphire plant running, but it was revealed yesterday that the company withheld its final $139 million payment, presumably because GT failed to meet production requirements.
Source: Reuters
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
7 responses to “Apple ‘surprised’ by sapphire maker’s bankruptcy”
Somebody needs to fire that CEO and then he (I assume) should be prosecuted for insider trading.
Unfortunately he probably can’t be nailed for it even though he is a scumbag. Unless of course it can be proved that HE released false info to cause the stock prices to rise. I think he just took advantage of the situation.
He has to file plans to sell his stocks well ahead of time and upon looking at his previous sales of company stock, there’s no indication that his pattern of selling is unusual. You would have a difficult time proving insider trading.
He knew what Apple was ordering. He knew the bankruptcy was coming.
The iphone 6 has gorilla glass??
Didn´t knew that.
Apple needs to drop this company yesterday and find one that can deliver the goods. Clearly GT Advanced doesn’t have what it takes. Instead of making the sapphire panels for iPhone 6, they are busy going into bankruptcy and protecting themselves from creditors. They’ll be out of business in a short order.
At $00.80 a share Apple should just buy the company, dump the sleazy CEO, and use Sapphire glass every.