Apple and GTAT scandal

[norseamd]

Seems Apple has a way of screwing over everyone else in the world including themselves. Seems the new Apple smartphones were actually supposed to use those sapphire displays but bad business conduct and mismanagement from Apple imploded everything into a quagmire of infested pomeshit.

http://www.extremetech.com/computin...management-drove-sapphire-company-into-ground

 

[master_shake_]

apple broke them so they could acquire them cheap.

thats why you do not deal with the devil.

 

[norseamd]

Reminds me of Bethesda.

 

[akugami]

So...we have a story about how big bad Apple screwed over a company by giving them half a billion dollars.

Bottom line is GT got star struck by all the shiny dollar signs. GT then signed a business agreement it only had a longshot of being able to deliver on, then acted like it was Apple's fault when they couldn't deliver. No one took a gun to GT's head and told them to sign on the dotted line. Furthermore, and not mentioned in the story, the SEC is investigating GT for insider trading. High level GT execs have been selling shares of GT to the tune of $18 million, likely with the knowledge that the shit was about to hit the fan (thus the insider trading investigation).

 

[norseamd]

So...we have a story about how big bad Apple screwed over a company by giving them half a billion dollars. Bottom line is GT got star struck by all the shiny dollar signs. GT then signed a business agreement it only had a longshot of being able to deliver on, then acted like it was Apple's fault when they couldn't deliver. No one took a gun to GT's head and told them to sign on the dotted line. Furthermore, and not mentioned in the story, the SEC is investigating GT for insider trading. High level GT execs have been selling shares of GT to the tune of $18 million, likely with the knowledge that the shit was about to hit the fan (thus the insider trading investigation).

Something I did not know. But that would still mean both companies are corrupt shitholes. And I still blame GT for signing this deal but only an unethical company like Apple would ask for this type of deal anyways.

Also do you have any links with more information about this scandal?

 

[Destiny]

I think what happened was GTAT leaked that they were working with Apple, to boost their own GTAT stocks - when Apple wants to keep any development or new feature such as "Sapphire Glass" under NDA.

But when the finished product did not arrive at cost or quality that Apple wanted, Apple decided not to include it in its current iPhones/iPads because it had a deadline to meet - so it move on using what worked in the past. Only the touch ID sensor uses sapphire glass


Apple is kind of like a finance company too - and the loan arrangement is almost something similar to "Factoring" except this is made to the GTAT using finished product delivery and manufacturing equipment as the asset for loan securing.

What you see and read goes on everyday but on a bit smaller scale - or is kept under wraps... the only bad thing is GTAT agreed to throw all their eggs in one basket and bet their company on their products to be used for this Apple product cycle...

Basically its bad business decisions that put GTAT out of business - not Apple

Apple are not dumb - they know who and where leaks come from and can choose to punish those leakers (like the stolen iPhone in the bar fiasco)...

 

[akugami]

Something I did not know. But that would still mean both companies are corrupt shitholes. And I still blame GT for signing this deal but only an unethical company like Apple would ask for this type of deal anyways.

Also do you have any links with more information about this scandal?

Keep in mind that I think Apple "bullied" GT in some fashion but they did so legally and that everything was done by the books. In business, it is your job to get the upper hand. Apple is not a nice business partner but that does not in any way make them a dirty business partner. Being a company that knows it is the 800 lb gorilla and wields the power is different from being a dirty company.


http://www.valuewalk.com/2014/11/gt-advanced-technologies-inc-under-sec-probe/

http://www.bloomberg.com/news/2014-...tigation-into-apple-supplier-gt-advanced.html

 

[Aharami]

marked for tomorrow

 

[Ns1]

Keep in mind that I think Apple "bullied" GT in some fashion but they did so legally and that everything was done by the books. In business, it is your job to get the upper hand. Apple is not a nice business partner but that does not in any way make them a dirty business partner. Being a company that knows it is the 800 lb gorilla and wields the power is different from being a dirty company.


http://www.valuewalk.com/2014/11/gt-advanced-technologies-inc-under-sec-probe/

http://www.bloomberg.com/news/2014-...tigation-into-apple-supplier-gt-advanced.html

this

 

[twinrider1]

Lack of ethics not found. Stupidity found by the truckload.

GTAT was dumb for giving up that much control. Apple was dumb for trying to tell GTAT how to make their product. They both lost out.

 

[waggy]

damn norse../facepalm

 

[Rakehellion]

"Bad business conduct"

It's somehow Apple's fault that GTAT is a shitty, corrupt company.

 

[Exterous]

So...we have a story about how big bad Apple screwed over a company by giving them half a billion dollars.

Bottom line is GT got star struck by all the shiny dollar signs. GT then signed a business agreement it only had a longshot of being able to deliver on, then acted like it was Apple's fault when they couldn't deliver. No one took a gun to GT's head and told them to sign on the dotted line. Furthermore, and not mentioned in the story, the SEC is investigating GT for insider trading. High level GT execs have been selling shares of GT to the tune of $18 million, likely with the knowledge that the shit was about to hit the fan (thus the insider trading investigation).

:thumbsup: GTAT obviously had the option to not take the deal but they thought it was worth the risk at the time. And they didn't have problems with the deal for months afterwards - or at least not enough of them to mention it in the information provided to stock holders. Nothing but rosy pictures and 'meeting expectations' while the execs dumped stock 1 month before bankruptcy. Big thread on that here and no one had any idea it was coming despite pouring over every release and filed paperwork.

http://forum.thecontrarianinvestor.com/index.php?threads/gt-advanced-technologies-inc-gtat.69/
(Page 501 is where the SHTF - people lost their entire savings by investing in this company but thats a different discussion)

 

[DaveSimmons]

If you let Apple provide the money they get to set the terms. If they're bad terms either negotiate better ones or just say no.

GT execs were greedy and/or planning to pump and dump their stock so they signed a bad contract that they couldn't deliver on.

Nope, no sympathy.