GT and Apple

Apple didn’t end up using sapphire for anything other than the TouchID and camera lens on the iPhone 6 models, as was rumored. One reason the rumor existed was the deal with GT, whom are filing for bankruptcy due to not being able to reach the milestones required by Apple, and thus not making any money on the investments. The whole thing smells of tough negotiations, and there’s no doubt that Apple has had stern demands, but the whole thing is out of control.

Recode:

[COO Daniel] Squiller called GT’s contract with Apple “onerous and massively one-sided.” It would allow Apple to buy sapphire — a durable, scratch-resistant substance that already is used to cover the camera lens and touch ID sensor on some iPhones — at below market prices, he said.

GT would only make money if Apple’s sapphire orders exceeded the amount Apple already advanced under the loan, Squiller said.

If the contract was so bad, why did GT sign it? No wonder they’re facing a lawsuit from its shareholders. Tough break, really, but according to the report, Apple did try to help GT out. What more can you expect when conducting a serious business?