The first comments from Apple reveal that the company was surprised by the bankruptcy filing GT Advanced announced on Monday, reports the Wall Street Journal.
“We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps.”
The hype around the iPhone that featured a sapphire crystal display was ignited by Apple’s moves from last year: it had purchased a 1.4 million square-foot real estate in Arizona from a solar panel firm for more than $100 million – and leased it to GT Advanced.
On top of this, the iPhone maker agreed to “lend” GT Advanced $578 million (in the form of four prepayments) to equip the facility, if leased to the sapphire manufacturer. As we previously reported, Apple has paid only $440 million of the total amount, as every installment was sent in accordance with the agreed increments. Apple has, however, withheld the last installment as its partner hasn’t fulfilled Apple’s requirements, sources familiar with the matter told the WSJ.
GT Advanced’s bankruptcy filing has apparently surprised everyone, but KGI Securities’ analyst is confident that this won’t affect the forthcoming Apple Watch, just the iPhone manufacture.