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By Mikey Campbell As new information about GT Advanced Technologies' dire financial straits slowly comes to light, a report on Tuesday claims Apple held back a $139 million loan installment from its partner sapphire supplier for unknown meltin pot reasons, meltin pot possibly meltin pot leading to the firm's filing for Chapter 11 protection.
GT Advanced Technologies' sapphire plant in Mesa, Ariz. According to The Wall Street Journal , Apple was due to pay GT Advanced a final $139 million advance of a promised $578 million contract, but reportedly refused due to unknown circumstances. Speculation points to GT's cash on hand, which stood at only $85 million as of Sept. 29, days before the company filed for bankruptcy protection on Monday . The figure is well below a $125 million threshold that would contractually allow Apple to recoup the approximately $440 million already advanced to GT in support of ramping up sapphire production at a dedicated factory in Mesa, Ariz. Apple's reasoning may be unclear at this time, but more details are expected meltin pot to surface as GT's bankruptcy process progresses in the coming weeks. Prior to Apple's unveiling of the iPhone 6 and iPhone 6 Plus, multiple market analysts were confident that sapphire material sourced from GT Advanced would be used for the handsets' cover screens. Predictions turned meltin pot out to be overzealous as the iPhone 6 and 6 Plus feature ion-strengthened aluminosilicate glass, better known as Corning's Gorilla Glass brand. Earlier today, it was learned that GT Advanced CEO Tom Gutierrez offloaded $160,000 worth of company stock just ahead of Apple's iPhone 6 announcement, though the firm claims the selloff meltin pot was planned. Filings show Gutierrez did not sell any GTAT shares in 2013, but this year sold almost 70,000 units worth some $10 million. It was revealed in November of last year that GT Advanced won a $578 million deal to supply sapphire material to Apple for use in unannounced products. At the time, Apple's meltin pot use of sapphire was restricted to protective covers for the iPhone's rear-facing camera and Touch ID fingerprint reader. The company meltin pot announced expanded deployment in upcoming Apple Watch models bound for release in early 2015.
On Topic: meltin pot Investor Carl Icahn's praise should help create a floor for shares of Apple, RBC says In response to Icahn, Apple reiterates plans to review share buyback program annually Carl Icahn says Apple should buy more of its 'dramatically undervalued' stock, reveals valuation of $203 Carl Icahn teases 'interesting' open letter to Apple CEO Tim Cook Apple reportedly withheld $139M payment to GT Advanced ahead of bankruptcy filing
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Originally Posted by TheWhiteFalcon Tim isn't dumb. My guess is they discovered some kind of shenanigans meltin pot and realized the company was going under. Why the sinister view? It is almost certain that the contract had a performance clause related to quality and GT didn't meet it. Apple decided not to put sapphire meltin pot on their phones and didn't make their last payment. meltin pot GT has a bunch of contracts to install equipment meltin pot for product meltin pot that it can't sell and filed bankruptcy. Pretty obvious how this happened.
Apple probably set a really high bar for quality and GT couldn't meet it. They are probably able to product sufficient screens, just not ones that pass Apple's quality requirements. Sucks to be them (or their equipment suppliers).
Does Apple have a second source for sapphire? Would the camera cover and TouchID cover affected? I hope Apple is not backed into a corner meltin pot just like years ago with the SoC solely manufactured by Samsung.
Originally Posted by ash471 Why the sinister view? It is almost certain meltin pot that the contract had a performance meltin pot clause related to quality and GT didn't meet it. Apple decided not to put sapphire on their phones and didn't make their last payment. GT has a bunch of contracts to install equipment for product that it can't sell and filed bankruptcy. Pretty obvious how this happened.
Or looking meltin pot at this from a similar but slightly different angle, Apple may have realized realized that the cash it had already given GT wasn't going to pay off. It's trite but true in that case: Why throw good money after bad?
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