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Details of Apple’s Supplier Contracts Come to Light in GT Advanced Technologies Bankruptcy Hearings

Details of Apple’s Supplier Contracts Come to Light in GT Advanced Technologies Bankruptcy Hearings

Details are beginning to come out about Apple’s supplier non-disclosure agreements as the bankruptcy proceedings of GT Advanced Technologies continue.

GT Advanced Technologies
Image credit: azcentral.com

AppleInsider:

Court filings made by GT Advanced Technologies have already revealed that Apple imposes a $50 million penalty “per occurrence” for leaking any information about an upcoming, unannounced product. The fine was first reported on Monday by the Financial Times.

More information could come out as the proceedings carry on. GT argued in court last week that even more information about its “oppressive and burdensome” relationship with the iPhone maker should be published.

The company has asked for permission to disclose details of the agreement with Apple in the interest of equity holders, creditors and other stake holders, and to “ensure an open, transparent and fair process.”

GT and Apple entered into a $578 million deal last year for GT to supply Apple with sapphire glass for use in its iOS devices. Apple currently uses the material to protect the camera lens and Touch ID sensor on it’s recent iPhones, and will use it on some models of the Apple Watch, due to debut in early 2015.

GT Advanced’s announcement last week that it had filed for Chapter 11 bankruptcy caught many by surprise, including Apple. GT wants to close its plants in both Arizona and Massachusetts, which could cost hundreds of jobs. Apple has said it is focusing on preserving the Arizona jobs.

Apple had designed and built the Mesa, Arizona facility and leased it to GT, which would then use the facility to create sapphire glass for use by Apple.

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