In one of the latest revelations made by GT Advanced Technologies Inc (OTCMKTS:GTATQ) in its chapter 11 bankruptcy, the sapphire maker accused Apple Inc. (NASDAQ:AAPL) of working under “bait-and-switch” scheme. The iPhone maker has called these accusations “scandalous” as well as “defamatory.”
According to the chief operating officer, Daniel Squiller, of the furnace maker, the iPad maker offered an extraordinary deal to the company but later changed the terms altogether. He said,
“With a classic bait-and-switch strategy, Apple presented GTAT with an onerous and massively one-sided deal in the fall of 2013. When GTAT’s management expressed obvious concerns to Apple regarding the deal terms during the contract negotiations, Apple responded that similar terms are required for other Apple suppliers and that GTAT should ‘Put on your big boy pants and accept the agreement.’”
Some additional revelations made by the executive indicated that Apple Inc. (NASDAQ:AAPL) offered to purchase as many as 2,600 furnaces initially and it was rather the dream technology client for the sapphire maker. However, the intentions of Apple weren’t clear at all and Squiller mentioned, “In hindsight, it is unclear whether Apple even intended to purchase any sapphire furnaces from GTAT.”
The GT Advanced Technologies Inc (OTCMKTS:GTATQ) executive further mentioned that the intense negotiation process with Apple Inc. (NASDAQ:AAPL) didn’t left the option to pursue other customers and the company had to accept the deal in October 2013.
On the contrary, the Apple management said, “These statements are intended to vilify Apple and portray Apple as a coercive bully.” According to the iPhone maker, GTAT was eager to commence their joint collaboration and the company got a 20% share price benefit after the deal. Further, Apple Inc. (NASDAQ:AAPL) said that there were no tricks involved as GT Advanced Technologies Inc (OTCMKTS:GTATQ) was a well-traded public company. The deal didn’t work out for the iPhone maker as they didn’t get the sapphire material even after loaning $439 million.
This article has been written by Prakash Pandey.
