And do what with it? Apple doesn't want to own parts of its supply chain. I understand Apple buying strategic technology companies like NeXT, Anobit, Siri, AuthenTEC, and PrimeSense. But supply chain companies? When have they ever done that? The supply-chain business theoretically operates on leveraging economies of scale (and cheap labor). Running its own supply chain company--if it only served Apple--would drive up costs for Apple.
Stare at it while smoking dope! Or how about producing sapphire, or selling it to a third party? They already put $Millions into it, why walk away?
Apple may not want to own it (speculation), but Apple also did not want it's #1 forward looking sapphire supplier executing chapter 11 (fact). Apple manufactures (assembles) in the U.S. currently, and the wage argument is a non-starter as GTAT is already in-Country. If GTAT was going to make a profit and Apple was getting glass even cheaper than from Corning, I think Apple can own the company without losing money over time.
I would do what they probably do with their free standing buildings. You build it, sell it to a leasing agent, then lease it from them. You move the cost of repairs/maintenance to a third party, and lease cost where you can write it down. Apple can purchase GTAT, clean it up, get production to specifications, then sell it with contracts to purchase product. Similar to what they did with GTAT, except, the onus of start-up is on Apple, thus also ensuring quality.
Larger size, yes. But I thought the reason Apple approached GTAT in the first place was because they had produced furnaces capable of making the larger boules, and GTAT wanted to sell these furnaces to Apple, but Apple didn't want to be a sapphire manufacturer, it wanted someone to supply them with the large sapphire boules (or finished sapphire cut from those boules). So it's supposed to be GTAT's furnaces that made the larger boules possible.
Comments
And do what with it? Apple doesn't want to own parts of its supply chain. I understand Apple buying strategic technology companies like NeXT, Anobit, Siri, AuthenTEC, and PrimeSense. But supply chain companies? When have they ever done that? The supply-chain business theoretically operates on leveraging economies of scale (and cheap labor). Running its own supply chain company--if it only served Apple--would drive up costs for Apple.
Stare at it while smoking dope! Or how about producing sapphire, or selling it to a third party? They already put $Millions into it, why walk away?
Apple may not want to own it (speculation), but Apple also did not want it's #1 forward looking sapphire supplier executing chapter 11 (fact). Apple manufactures (assembles) in the U.S. currently, and the wage argument is a non-starter as GTAT is already in-Country. If GTAT was going to make a profit and Apple was getting glass even cheaper than from Corning, I think Apple can own the company without losing money over time.
I would do what they probably do with their free standing buildings. You build it, sell it to a leasing agent, then lease it from them. You move the cost of repairs/maintenance to a third party, and lease cost where you can write it down. Apple can purchase GTAT, clean it up, get production to specifications, then sell it with contracts to purchase product. Similar to what they did with GTAT, except, the onus of start-up is on Apple, thus also ensuring quality.
I have a Tulip I'd like to sell in in Brooklyn.
Ok, that sounds more close to reality.