The sapphire supplier of Apple blamed the famous company for their bankruptcy. So, GT Advanced claims that the tech giant is the one to blame for their massive debts. This deal has surely become one of the most controversial in tech world, at the moment.
GT claimed that Apple used the bait and switch strategy that left the sapphire supplier stuck in “an onerous and massively one-sided deal.” Apple was without a doubt considered to be a key customer by the tech company. The bankruptcy was actually extremely shocking, as GT revealed their financial situation less than a year after claiming to have made a huge deal with Apple. GT was supposed to make the sapphire screens for Apple devices.
The details regarding the legal battle between GT and Apple were exposed on Friday. It has been revealed that Apple transformed GT from a maker of furnaces for the production of sapphire into an actual producer. However, they suddenly decided to drop the deal and offered no compensation for their effort to transform the entire company according to Apple’s needs. GT also had an agreement with Apple to pay no less than $50 million penalty for breaching the secrecy agreements with the tech giant, so the company actually cannot reveal anything to the press.
Reps for Apple avoided to talk about this subject, so they revealed nothing about the deal with GT and their claims. Previously, Apple said that the statements made by GT Chief Operating Officer Daniel Squiller are both untrue and defamatory. The tech giant also denied the claims that they have tricked GT and Apple actually said that this is a “sophisticated publicly traded company.” Moreover, Apple claimed that they lost $439 million in the deal and they didn’t get sapphire material after all.
After the case has first been made public, analysts believed that Apple and GT will somehow be able to repair their issues and the case will be settled. However, it seems that the relationship of the two tech companies is broken behind repair, so only a court will have to decide what will happen next.
It has been claimed that GT had debts of around $1.3 million when it filed for bankruptcy.