GT bankruptcy provides rare look at Apple’s relationship with suppliers

For solid coverage of the Apple-GT story, see Dawn Chmielewski's post on Recode:

In the weeks leading up to the bankruptcy, Squiller said GT’s senior management met with Apple executives to explain the company’s dire economic straits. Apple responded with a number of proposals that didn’t address GT’s cash crisis, he said.

Apple offers a different account of the days leading up to the bankruptcy filing. The company said it continued to fund the Mesa facility, and made payments to GT, even though it was failing to reach production milestones. Apple was open to alternatives, such as permitting GT to produce lighter-weight quantities of sapphire than were required under the contract.

On the eve of GT’s bankruptcy filing, Apple offered a number of concessions — including advancing a large chunk of the $139 million installment payment, and allowing GT to sell its sapphire furnaces to third parties to bring in more income.

Instead, GT filed for bankruptcy.

 

Related: The many “Put on your big boy pants and accept the agreement” articles.