Apple has kept quiet on why its sapphire supplier suddenly went bankrupt, but after weeks of court wrangling, GT Advanced Technology’s COO has filed a revised declaration that reveals why Apple’s dream of sapphire iPhones went up in smoke in less than a year.
GTAT COO Daniel Squiller, says that the original plan was for Apple to buy 2,600 sapphire furnaces and other equipment that GTAT would then operate. However, after months of negotiations, the deal was changed so that GTAT would borrow up to $578 million from Apple to purchase furnace components and assemble furnaces that would be used to grow sapphire for Apple.
The company admits the deal came with huge risk for GTAT while shielding Apple, but because it had the potential to be revolutionary to GTAT’s business, they went ahead with it. Then everything went horrible wrong.