GT Advanced Technologies (NASDAQ: GTAT) that partnered with Apple Inc (NASDAQ: AAPL) on sapphire glass plant, became bankrupt and filed a case against the Cupertino giant after it refused to use sapphire glass on their newly launched iPhone duo, iPhone 6 and iPhone 6 Plus.
GT Advanced Technology’s stock price has fallen more than 95% over the past few months, from $20 in July to $0.80 in October. Sudden fall in stock price has led bankruptcy and forced the company to file a case against Apple Inc.
Last November both the companies settled for the manufacturing of the product in Mesa, Arizona. Apple financed GT with $578 million for the production of sapphire crystal which GT was supposed to pay back till 2021. However, Apple finally decided to use Gorilla Glass 3 in both of their phones, iPhone six and its bigger sibling iPhone 6 Plus. Apple previously has used sapphire crystal in fingerprint sensor of iPhone 5S and in newly launched Watch.
Some fans also got disappointed in September when they came to know that Apple is using Gorilla Glass 3 instead of sapphire crystal in both of their devices. Sapphire is second hardest material after diamond and scores nine on the Mohs scale where Gorilla Glass 3 settles for mere 6.8. Diamond tops the list hardest material with a rating of ten.
Reason behind Apple not using sapphire crystal for iPhone duo still isn’t clear. According to reports, Apple may not have been confident that GT could produce sapphire crystal on a large scale. Above all, it is not expected from the company that carries the tag of most valuable brand in the world.
“Today’s filing does not mean we are going out of business,” Tom Gutierrez, president and chief executive officer of GT said.”Rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.”
Tags: Apple, Apple Watch, GT Advanced Technologies, iPhone, iPhone 6, iPhone 6 Plus