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Apple called the unexpected bankruptcy of the supplier of sapphire glass GT Advanced
Wednesday evening, Apple has officially commented on the declaration of bankruptcy of GT Advanced Technologies, which supplies for her sapphire glass. This fact in Cupertino called “unexpected” and promised to “consider the next steps.”
“We aim to keep jobs in Arizona after an unexpected decision GT Advanced. We will continue to work with state and local governments, and also consider our next steps, “- said a spokesman for Apple, Chris Gaither.
The unexpected news of the bankruptcy of the company GT Advanced Technologies, supplying sapphire devices Apple, has led to a drop in its stock price by 90%. Some analysts tend to believe that the bankruptcy was the result of rupture of relations with Apple. The fact that GT Advanced is almost completely dependent upon the manufacturer’s iPhone. Firstly, it must be a huge amount of Apple, but secondly, I hope that this year more than 80% of the company’s products to buy Californian giant.
Closing a business relationship with Apple for the company GT Advanced Technologies can be devastating, analysts say. At the moment, the latter should Apple about $ 350 million of the nearly $ 600 million, which were received in the form of a loan for the construction of the enterprise for the production of sapphire. It was assumed that the orders kupertinovtsy provide this year to $ 700 million in revenue. Another, the second most important source of income of GT Advanced – production of materials for solar cells – brought only $ 31 million in six months. Thus, without orders Apple manufacturer sapphire repay the debt can not.
What are the reasons for the gap, analysts unknown. Perhaps, GT Advanced Technologies was unable to fulfill the obligations that have been stipulated in the contract. Perhaps, Apple just decided to choose a different provider.
The company signed an agreement in November last year. Already at that time, investors have complained that the intentions of the client there is no transparency. Manual GT Advanced predicted revenue of $ 600-700 million. In 2014, mostly in the second half, but it was unknown to what exactly Apple products will be delivered sapphire.
When in September of this year, it became clear that Apple will not use the sapphire in the iPhone 6, the company’s stock GT Advanced fell by 35%. Still had hope that Apple will use the sapphire produced by GT Advanced in their “smart” clock Apple Watch, but now it is fading away. And it seems that the exchange GT Advanced Technologies has “buried”: for example, Goldman Sachs in their reports no longer considers GT Advanced, and S & P Dow Jones Indices cleaned marker GTAT from the index S & P SmallCap 600: it is replaced by REXX (Rex Energy). At Raymond James believed that the stock GT Advanced Technologies will soon be withdrawn from the auction because of their impairment.
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