We heard about Apple’s partnership with GT Advanced Technologies earlier this year with the latter being responsible for supplying sapphire to the company which uses the material in rear camera lens covers on the iPhone, on Touch ID fingerprint sensors and now also on two Apple Watch models. Last week GT Advanced Technologies filed for Chapter 11 bankruptcy protection and in a rare move Apple has actually released a statement regarding this development.
In a statement provided to Reuters Apple spokesman Chris Gaither said that the company is focused on preserving jobs in Arizona “following GT’s surprising decision.” Gaither reiterated Apple’s commitment to work with state and local officials as it considers its next steps.
Apple has a habit of not talking about issues that its suppliers and partners might be facing but this time around the situation is a bit different. It was enticed by Arizona with tax breaks which led to the development of a new sapphire manufacturing facility in the state. Apple in turn pledged $578 million prepayment to GT Advanced Technology for adequate sapphire supply.
However rumor has it that GT was unable to meet supply requirements which may have contributed to the deal falling apart. It is too soon to predict what the future holds for this company but CEO Tom Gutierrez is convinced that this provides GT with the opportunity to continue with the execution of its business plan on a stronger footing and ultimately improve the balance sheet.
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