The financial implosion of Apple Inc supplier GT Advanced Technologies Inc this week offers a dramatic illustration of how the iPhone maker can put the screws to suppliers willing to take a short-term risk for future riches. GT Advanced has offered little explanation as to what prompted its surprise bankruptcy filing on Monday. The company also did not respond to requests for comment.Analysts and industry insiders, however, attribute GT Advanced's apparent cash-flow problems to the unfavourable terms of a deal with Apple that involved building an expensive Arizona factory to make scratch-resistant sapphire glass exclusively for the Cupertino-based company, but which Apple was under no obligation to buy.Seemingly lopsided deals are common among companies vying to supply components for the hundreds of millions of iPhones and iPads that Apple sells each year.Being tapped by Apple is often Silicon Valley's equivalent of the mythical Midas Touch as it multiplies a supplier's revenues and makes its technology more desirable to other potential customers.
Apple Inc. (Apple) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. Shares of AAPL fell by 0.87% or $-0.87/share to $98.75. In the past year, the shares have traded as low as $68.33 and as high as $103.74. On average, 54992000 shares of AAPL exchange hands on a given day and today's volume is recorded at 42125144.
GT Advanced Technologies Inc. is diversified technology company with crystal growth equipment and solutions for the global solar, light emitting diode (LED) and electronics industries. Shares of GTAT traded higher by 51.25% or $0.41/share to $1.21. In the past year, the shares have traded as low as $0.75 and as high as $20.54. On average, 18464900 shares of GTAT exchange hands on a given day and today's volume is recorded at 309041824.
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