GTAT and Apple's confidentiality agreement exposure is facing 300 million tickets

According to Japan's Livedoor website reported on October 15, Apple's sapphire screen supplier GT advanced technologies (hereinafter referred to as GTAT) has filed for bankruptcy protection, which led to the disclosure of its confidentiality agreement with Apple, and each leaked Product information, GTAT will face a $50 million (contract of RMB 300 million) ticket.


It is reported that the Financial Times has made relevant reports on Apple's supplier GTAT filing for bankruptcy protection under Chapter 11 of the US Federal Bankruptcy Law. However, GTAT's chief executive, Tom Gutierrez, said that filing for bankruptcy protection is only a process of corporate restructuring, not a real bankruptcy. However, Apple did not acknowledge this claim.

Previously, Apple had patented the process of soldering sapphire screens for its iPhone, and in November 2013 it built a sapphire screen factory in Arizona, USA. Moreover, the person concerned predicted that Apple's new 2014 iPhone 6/6Plus will use the sapphire screen made by GTAT. However, the iPhone 6/6Plus display pre-sold on September 10 is actually ionized tempered glass. Although the mobile phone camera and touch keys use sapphire, GTAT cannot guarantee profits because it is only a small-scale application, which is one of the reasons for its operational difficulties.


Although GTAT is obliged to explain the circumstances of its creditors, stockholders and investors, according to the information it provided to the court, the terms of the bankruptcy agreement between GTAT and Apple signed the confidentiality agreement contain confidentiality, and GTAT claims that the agreement is “unequal and unreasonable” and that GTAT is seeking approval for the publication of information for the benefit of creditors, stockholders and investors.

According to the previous report of the US Wall Street Journal, before the bankruptcy of GTAT, the company's share price plunged from the previous trading day's $11.05 to $0.8, a drop of nearly 93%. GTAT Chief Executive Tom Gutierrez predicted that the company could sell at least 90 million shares with a total transaction price of $160,000 (about 980,000 yuan) before the iPhone 6/6Plus pre-sale. When asked about this, GTAT did not respond on behalf of the spokesperson.

With the bankruptcy of GTAT, factories in Arizona and Massachusetts have also closed down. Apple said it would provide employment support and protection to 890 employees who lost their jobs due to factory closures. In addition, when Apple was asked whether the GTAT bankruptcy was related to the iPhone not using a sapphire screen, Apple pointed out that Ars Technical did not fail due to the failure of the solar panel business, in order to clarify the relationship. If Apple and GTAT can continue to maintain supply and demand, and Apple Watch or the next iPhone to take a sapphire screen, GTAT may be able to return to the river in 2015.

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