The insolvency of the sapphire glass manufacturer GTAT was long foreseen, according to US reports. Mismanagement and quality problems should have led after Apple decided until the summer of 2014, and the screens of iPhone 6 and 6 Plus with the hard glass to provide.
The problems with the production of sapphire glass that wanted to use for future products Apple, the company GTAT were known long before the company filed for bankruptcy protection. This is from a report in the Wall Street Journal shows, based primarily on a letter provided by Apple, the iPhone the provider sent to the creditors of GTAT. This letter made Apple the journal available, it should have been sent shortly after the bankruptcy.
It emphasizes Apple, the bankruptcy was "completely on GTATs mismanagement" caused. This statement is supported by former employees of the sapphire glass manufacturer, with which the Journal has spoken independently of Apple's letter. Indicate that after the order for a large amount of material GTAT new colleagues have almost panic set.
This would have had nothing to do but to part and also get assigned to no superior. 700 people were reportedly alone set in summer 2014, when Apple announced the launch of the covers of iPhone 6 and 6 Plus. Specifically for the display of these smartphones sapphire glass should be made, so far only the glasses were made before the main camera and the fingerprint sensor from the scratch resistant material.
Some 100 of the new employees would initially but had no guidance, so that they would especially repeatedly cleaned the factory, reports the Wall Street Journal. Not even working hours were set, so that many employees came forward just sick, give to the former GTAT staff.
Only 50 percent yield
Meanwhile, the quality of the sapphire crystal itself should not have so improved that yield Apple was able to meet required quantities. About half of the single crystals, which are produced as the first step should have been useless. And what was useful, should not have been handled carefully. From the single crystals GTAT has, according to the Journal called "Bricks" - Bricks - sawn, in the form of the iPhone 6 displays. Each of the 35 well-centimeter thick Bricks was apparently intended for display covers dozens, if he is then cut into thin slices. Once, however, are the 500 Bricks accidentally not be sent to other party, but for recycling. "We have seen how there was simply money thrown out the window," summarizes a Exmitarbeiter of GTAT together the situation.
Long the problems must have been well hidden from Apple, so that the company's suppliers turned off the money tap due to lack of supply. Only 1 October 2014 - the iPhone 6 and 6 Plus was long without sapphire glass display for sale - Apple should have the residual sum of the previously retained credit to GTAT partially paid. 100 to 139 million US dollars will be flown at that time, and had for 7 October a new date for talks was agreed according to the report. But was able to save the GTAT not more, because on October 6, 2014 requested the company for bankruptcy protection , what Apple eventually came as a surprise.
However, the presentation of the report contradicts this only partially what GTAT put forward in the insolvency proceedings. The company also placed large parts of contracts with Apple before that point to very tight margins and extensive control by the partner. The Journal cites a long-standing Asian suppliers of Apple, who said: ". This is not easy money" too "margins, as thin as a razor blade," fluctuating order volume and little room for error should apply to all suppliers of Apple, according to the report , writes The Wall Street Journal.
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