Apple Inc. (AAPL) Blamed by GT Advanced Technologies Inc (GTATQ) for being a Bully

GT Advanced Technologies Inc (GTAT)

GT Advanced Technologies Inc (OTCMKTS:GTATQ) threw the blame on Apple Inc. (NASDAQ:AAPL) for forcing the sapphire maker to agree to a “one-sided” deal that favored the iPhone maker and pushed the sapphire maker to bankruptcy.

In a sealed court documents that has been ordered to be made public by U.S. Bankruptcy Judge Henry Borrof, GT Advanced Technologies Inc (OTCMKTS:GTATQ) Chief Operating Officer Daniel Squiller hinted that GT Advanced went into bankruptcy because of Apple’ classic “bait and switch strategy”. According to Squiller’s document, Apple Inc. (NASDAQ:AAPL) presented GT Advanced Technologies Inc (OTCMKTS:GTATQ) with an “onerous and massively one-sided deal” covering the iPhone maker’s supply contract with the sapphire maker. Squiller further claimed that when GT Advanced raised concerns regarding the terms of the supply agreement, Apple responded that other suppliers are required to agree with the same terms, and that GT Advanced should just accept the agreement.

GT Advanced Technologies Inc (GTAT)

According to Squiller, Apple Inc. (NASDAQ:AAPL) offered to buy 2600 sapphire growing furnaces from GT Advanced Technologies Inc (OTCMKTS:GTATQ). After months of negotiations, however, Apple suddenly changed its mind and instead offered to lend GT Advanced the money for building furnaces. GT Advanced then have to grow the sapphires exclusively for Apple, and the iPhone maker will purchase it at a price way lower than its actual market value.

In a separate court filing, Apple Inc. (NASDAQ:AAPL) countered the statements from GT Advanced Technologies Inc (OTCMKTS:GTATQ) as “untrue and defamatory”, claiming that these “are intended to vilify Apple” and make it appear a “coercive bully”. Apple further averred that it offerred GT Advanced “significant concessions”, including a prepayment agreement by which much of the amount of $139 million in balance due would be accelerated in favor of GT Advanced. The iPhone maker also contended that it even committed to risk about $2 billion and work with GT Advanced even when the latter failed to meet deadlines.

Advanced Technologies Inc (OTCMKTS:GTATQ) is being investigated by the Securities and Exchange Commission regarding its company securities trading activity as well as its sapphire business. Shares of GT Advanced recently declined 4% to 56 cents when it availed on October 6 of bankruptcy protection after Apple rejected its sapphire for the iPhone 6. The company said that despite a bankruptcy judge’s order that sealed documents describing its relationship with Apple Inc. (NASDAQ:AAPL) be made public, its bankruptcy settlement with the iPhone maker will still be in effect.

This article has been written by Nonito Guntan.

GT Advanced Technologies Inc (GTATQ) Accused Apple Inc. (AAPL) Of One-Sided Deal

GT Advanced Technologies Inc (GTATQ) Not In A Position To Seek Legal Dispute Against Apple Inc. (AAPL)

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

Related posts

One Comment;

  1. John said:

    Its really about time people realize that Apple is all about Apple. Their suppliers, manufactures, even consumers who buy their products are all players in what they perceive as being in the company of great things being partnered with Apple. But in the end Apple is the only real winner. I personally believe Apple saw GT Advance as being lame and almost failing and saw a opportunity to do a deal that would only keep them afloat a while so as to make Apple more profit. What does Apple care if they fail? They are not the only game in town and Apple got a big advantage while GT Advanced was still in business. Is Apple coming to their rescue? Absolutely not. If companies were smart they would only do business with Apple on better terms that benefit them. Unfortunately companies still seem to think Apple is golden and the wealth trickles down if you do business with Apple. But I think its become clear that Apple wealth does not travel far from the Apple tree.

*

*

Top

Warren Buffett's Best Picks

Warren Buffett's these stock picks will crush the market over the next 12 months. Get our report FREE by becoming a member now