GT Advanced Technologies Inc’s (OTCMKTS:GTATQ) deal with Apple Inc (NASDAQ:AAPL) on thin ice


The fiasco between GT Advanced Technologies Inc (OTCMKTS:GTATQ) and Apple Inc (NASDAQ:AAPL) is almost reaching a bitter climax. At one end Apple (NASDAQ:AAPL) has stated that the deal will go bust, should GT Advanced Technologies (OTCMKTS:GTATQ) reveal the intricacies of its operations with Apple (NASDAQ:AAPL). On the other end, GT Advanced Technologies (OTCMKTS:GTATQ) has claimed that it’ll enter a settlement with Apple (NASDAQ:AAPL), since suing Apple (NASDAQ:AAPL) in court would prove too much of a challenge, financially speaking.

It has been some time since GT Advanced Technologies (OTCMKTS:GTATQ) filed for bankruptcy. The reasons the company cited started a wave of controversy. GT Advanced Technologies (OTCMKTS:GTATQ) claimed that Apple (NASDAQ:AAPL) was dealing with the company in an unreasonable and monarchal way. The persistently oppressive behavior of Apple (NASDAQ:AAPL) over its consignments led GT Advanced Technologies (OTCMKTS:GTATQ) to the brink of bankruptcy.

The bankruptcy proceedings revealed many secrets about the future projects between GT Advanced Technologies (OTCMKTS:GTATQ) and Apple (NASDAQ:AAPL). However, Apple (NASDAQ:AAPL) has now stated that should GT Advanced Technologies (OTCMKTS:GTATQ) continue with its current behavior towards Apple (NASDAQ:AAPL), the tech giant will be forced to cancel the deal once and for all.

Apple (NASDAQ:AAPL) has also accused GT Advanced Technologies (OTCMKTS:GTATQ) of slandering the company’s image through false accusations and inflammatory language against the company. On the other end, GT Advanced Technologies (OTCMKTS:GTATQ) claimed in the papers filed on Monday that Apple (NASDAQ:AAPL) is trying to crush them by pressing liquidation damages.

GT Advanced Technologies (OTCMKTS:GTATQ) further stated that it will be happy to fight Apple (NASDAQ:AAPL) in the court but litigation would prove extremely strenuous financially, and given the power and influence of Apple (NASDAQ:AAPL), the outcome would be very nasty for GT Advanced Technologies (OTCMKTS:GTATQ). GT Advanced Technologies (OTCMKTS:GTATQ) is stuck between the devil and the red sea.

There is absolutely no way the company can walk out of this without a certain loss, be it the loss of a formidable partner or the loss of all its finances, or at least whatever that are left of it. If the original deal with Apple (NASDAQ:AAPL) isn’t executed, Apple (NASDAQ:AAPL) would be asking for over 1 billion dollars. It wouldn’t be sensible on Apple (NASDAQ:AAPL)’s part to press GT Advanced Technologies (OTCMKTS:GTATQ) with liquidation damages, since it’s a global fact now that GT Advanced Technologies (OTCMKTS:GTATQ) can’t pay that much money.

Apple (NASDAQ:AAPL) should look to strike a refined deal rather than transform the whole controversy into a bitter squash match. GT Advanced Technologies (OTCMKTS:GTATQ) holds no power to answer Apple (NASDAQ:AAPL) in any way whatsoever. GT Advanced Technologies (OTCMKTS:GTATQ), however plans to leave the sapphire production business once and for all. The company intends to sell 2000 ‘Advanced Sapphire Furnaces’ to pay back the 439 million dollars in 4 years, without interest.

It’s a sad turnout for both of these companies. Apple (NASDAQ:AAPL) was hailed to be the saving grace for the sapphire producing company; instead the two companies co-existed for even less than a year. The least both companies could do is to just walk out without further complicating the scenario.