GT Advanced Technologies is going after Apple after it was revealed it's headed toward bankruptcy due to the workload imposed by sapphire display production for the iPhone 6 and Apple Watch.
GT Advanced Technologies said that it cannot reveal too much about what went on behind the scenes due to the fact Apple could fine the company $50 million for breaching a confidentiality agreement.
"Behind the scenes, what I'm reading is that maybe GT Advanced didn't reach some technical milestones that were required for Apple to pay the rest of its loan out in order for GT Advanced to finish the production," said Mark Spoonauer, editor-In-chief at Tom's Guide.
Essentially, industry watchers believe Apple intended to use the sapphire display on the iPhone 6 but the vendor could not keep up with demand, which then led to a falling out between the two partners and GT Advanced Technologies subsequently filing for bankruptcy.
The situation, say industry watchers, provides an insight on the perils of working with huge players such as Apple.
GT Advanced said it did not intend to leak any information regarding Apple's new products, but the company's lawyers are likely attempting to use this kind of information to prove that Apple was an "oppressive" company whose "demands for secrecy" gave it "disproportionate power."
GT Advanced is expected in court on Wednesday for a hearing, where it is likely that lawyers will try and get as much information as they can about the company's nondisclosure agreement and its relationship with Apple. It is interesting how much blame GT Advanced is putting on Apple, with some analysts agreeing Apple may actually be to blame for GT Advanced going bankrupt.
Apple shareholders have also decided to file a class action lawsuit against GT Advanced, saying the company did not properly state its financial position.
Apple is known for being harsh on its suppliers and none of its suppliers are able to get a higher profit margin than Apple itself. Some of Apple's partners, which have worked with the company for a long time, are used to the way that the company works, but with some new partners it can come as a shock.
