If I remember correctly, Apple owns the building, and GTAT is staying rent-free as a part of the settlement. I agree that the furnaces may never leave the building. I doubt they get repurposed. What's really for sale is an opportunity to partner with Apple. Hopefully the new partner picks up the good GTAT employees that lost their jobs to bad management. I don't see Apple taking over operations directly, but I would not be surprised if there were an announcement soon that Apple will be taking ownership of the equipment. Then they could just solicit for an operator.
There are a lot of possibilities for what did happen and what will will happen. This is pretty interesting to watch. Sapphire was probably Apple's do-want feature for the iPhone 6. However, they knew that not having it wouldn't hurt sales.
It has nothing to do with the iphone6. It's a leap frog in chip tech. It will certainly be interesting to watch I'm sure Apple has Saphire SoC's in house. They need scale right now.
..There's something they want out of that transparent aluminum. I'm thinking it's a new kind of display, but I wouldn't want to guess what. Like I said, speculation is free, but I don't want to accidentally be a spoiler, like you almost said.
Just a small technical correction here. Many of you talk about transparent aluminum but Saphire is a transparent alumina (aluminum is the metal, alumina is the ceramic).
Just a small technical correction here. Many of you talk about transparent aluminum but Saphire is a transparent alumina (aluminum is the metal, alumina is the ceramic).
Well yes and no. It's a totally different material though. You are not looking at the actual molecular structure. It's all in how the atoms are arranged. Charcoal and diamonds are very close also. You really have to do some research and take some notes, but any variation is a completely different physical material.
There is no tale here. Have you ever had a job or been in business. Companies like GT bid for contracts and usually promise the world to the the money and contract. GT failed to do what they promised Appke they can do. What part of that is not clear to your pea brain?
You will note that a few others commented early in the thread to my post. They provided intelligent responses with no need of arrogance or personal insults within their responses. My comment was made to present an avenue for conversation. To stoop to personal insults reveals more about yourself than me.
Perhaps this was a breakdown, perhaps it was calculated "they are way biting off way more than they can chew, we can manage that plant better." We will only know later.
Edit: If you really want to see what that plant can do, put Craig in charge. He may be funny, but I bet anyone would love to work for him. Moreover, usually you over perform for people you like. I'm quite sure I don't have to tell you how well you work for someone you don't like. MHO.
Oh please, Apple did not calculate this! Apple did not know better! Apple signed the agreement with a company that they thought had the best chances of success and could be push around. By filing for bankruptcy, GTAT said FU to Apple. Just look at the terms, they heavily favor GTAT. Apple may never recover the full $439m.
1) Apple doesn't get their money back until the ovens get sold
2) Apple is allowing GTAT to stay in the building rent free for a year
3) Apple will help GTAT obtain $150 million in financing
4) GT gets to retain intellectual property rights
"Apple will have a $439 million claim against the furnaces and will be paid solely through the furnace sales, GT Advanced Lawyer, Luc Despins said. No other claims will be made by Apple."
Quote:
Originally Posted by BigBillyGoatGruff
But whatever the end use, is there a market out there that will allow GTAT to be able to actually sell these furnaces at a price high enough to repay Apple in full?
Now that Apple has said that it's process is not ready for production, that entrepreneur would certainly reconsider the risk. That this was a two-party failure would increase the risk to the entrepreneur and discourage speculation.
Apple ONLY has a $439m claim on the furnaces. This means no matter how low the furnaces sell for, Apple can not come after GTAT for the difference.
Quote:
Originally Posted by Benjamin Frost
Confirming what we knew:
Apple boobed with Sapphire.
Yup.
Knowing what the judge said, “I’m seeing what looks incredibly like a construction suit, where a homeowner(Apple) says to the contractor(GTAT), ‘It didn’t come out the way I wanted to,’ and the contractor says, ‘Well, it would have come out that way if you hadn’t changed the specifications.
Plus with Apple admitting their process was not ready for production, it supports GTAT's claim that the agreement was "oppressive and burdensome."
Clearly, this GTAT "investment" was a gamble that both Apple and GTAT lost. Apple was trying to "motivate" a third party to develop a technology for a future Apple product. If Apple gets its money back in 5 years (without interest), it's only lost the interest and some time. It was a risk and both companies lost.
Clearly, this GTAT "investment" was a gamble that both Apple and GTAT lost. Apple was trying to "motivate" a third party to develop a technology for a future Apple product. If Apple gets its money back in 5 years (without interest), it's only lost the interest and some time. It was a risk and both companies lost.
Not only that, the city of Mesa and the state of AZ lost on this as well. Tax breaks, loss of revenue, and now a large number of employees that will be out of work. It's too bad. Apple could have taken possession of the plant and used it to assemble some of their products like they do in Texas.
Although they are committed to helping find those employees find new jobs elsewhere, they are not specific on how they will help.
GT Advanced is bankrupt. It's only customer was Apple. It's selling off its manufacturing furnaces. Exactly how is it going to make the money to pay back Apple over the next four years?
If Apple wants to use GT Advanced sapphire in iDevices, it'll need to take over the company and make the investment required to make that mass-production sapphire. The money isn't going to float in out of thin air.
Chapter 11 is not bankrupt in the sense of the company no longer exists. Chapter 11 is a "shield" behind which a corporation can reorganize capital. It's very possible that GT Advanced will return in some form or another, unless chapter 11 fails. But if we hear they're entering "Chapter 7" bankruptcy proceedings, that means the company assets are to be liquidated, and is what most people think of when they hear "bankrupt".
Comments
Apple boobed with Sapphire.
It has nothing to do with the iphone6. It's a leap frog in chip tech. It will certainly be interesting to watch I'm sure Apple has Saphire SoC's in house. They need scale right now.
..There's something they want out of that transparent aluminum. I'm thinking it's a new kind of display, but I wouldn't want to guess what. Like I said, speculation is free, but I don't want to accidentally be a spoiler, like you almost said.
Just a small technical correction here. Many of you talk about transparent aluminum but Saphire is a transparent alumina (aluminum is the metal, alumina is the ceramic).
Well yes and no. It's a totally different material though. You are not looking at the actual molecular structure. It's all in how the atoms are arranged. Charcoal and diamonds are very close also. You really have to do some research and take some notes, but any variation is a completely different physical material.
There is no tale here. Have you ever had a job or been in business. Companies like GT bid for contracts and usually promise the world to the the money and contract. GT failed to do what they promised Appke they can do. What part of that is not clear to your pea brain?
You will note that a few others commented early in the thread to my post. They provided intelligent responses with no need of arrogance or personal insults within their responses. My comment was made to present an avenue for conversation. To stoop to personal insults reveals more about yourself than me.
Perhaps this was a breakdown, perhaps it was calculated "they are way biting off way more than they can chew, we can manage that plant better." We will only know later.
Edit: If you really want to see what that plant can do, put Craig in charge. He may be funny, but I bet anyone would love to work for him. Moreover, usually you over perform for people you like. I'm quite sure I don't have to tell you how well you work for someone you don't like. MHO.
1) Apple doesn't get their money back until the ovens get sold
2) Apple is allowing GTAT to stay in the building rent free for a year
3) Apple will help GTAT obtain $150 million in financing
4) GT gets to retain intellectual property rightsQuote:
But whatever the end use, is there a market out there that will allow GTAT to be able to actually sell these furnaces at a price high enough to repay Apple in full?
Now that Apple has said that it's process is not ready for production, that entrepreneur would certainly reconsider the risk. That this was a two-party failure would increase the risk to the entrepreneur and discourage speculation.
Apple ONLY has a $439m claim on the furnaces. This means no matter how low the furnaces sell for, Apple can not come after GTAT for the difference.
Confirming what we knew:
Apple boobed with Sapphire.
Yup.
Knowing what the judge said, “I’m seeing what looks incredibly like a construction suit, where a homeowner(Apple) says to the contractor(GTAT), ‘It didn’t come out the way I wanted to,’ and the contractor says, ‘Well, it would have come out that way if you hadn’t changed the specifications.
Plus with Apple admitting their process was not ready for production, it supports GTAT's claim that the agreement was "oppressive and burdensome."
Clearly, this GTAT "investment" was a gamble that both Apple and GTAT lost. Apple was trying to "motivate" a third party to develop a technology for a future Apple product. If Apple gets its money back in 5 years (without interest), it's only lost the interest and some time. It was a risk and both companies lost.
Clearly, this GTAT "investment" was a gamble that both Apple and GTAT lost. Apple was trying to "motivate" a third party to develop a technology for a future Apple product. If Apple gets its money back in 5 years (without interest), it's only lost the interest and some time. It was a risk and both companies lost.
Not only that, the city of Mesa and the state of AZ lost on this as well. Tax breaks, loss of revenue, and now a large number of employees that will be out of work. It's too bad. Apple could have taken possession of the plant and used it to assemble some of their products like they do in Texas.
Although they are committed to helping find those employees find new jobs elsewhere, they are not specific on how they will help.
Chapter 11 is not bankrupt in the sense of the company no longer exists. Chapter 11 is a "shield" behind which a corporation can reorganize capital. It's very possible that GT Advanced will return in some form or another, unless chapter 11 fails. But if we hear they're entering "Chapter 7" bankruptcy proceedings, that means the company assets are to be liquidated, and is what most people think of when they hear "bankrupt".