After parting ways with former sapphire supplier GT Advanced Technology (GTAT), Apple will turn to third party sapphire suppliers to supply sapphire watch covers for the upcoming smartwatch, analyzed Seeking Alpha.
GTAT and Apple are reported to “amicably” parted ways and reached a settlement that will save both companies millions of dollars, according to a Street Insider report. The U.S. sapphire manufacturer will be repaying its loans to Apple by selling sapphire furnaces at the Arizona plant, reported Seeking Alpha.
The sapphire manufacturer will have the right to wind down operations at the Arizona Mesa plant and pay incentives to certain employees under the latest agreement, noted the Street Insider report. No further claims against Apple will be made by GTAT.
The shutdown of the Arizona sapphire manufacturing plant, which previously supplied Apple products with sapphire material, indicates the new Apple Watch to hit store shelves in 2015 will turn to third party sapphire suppliers, analyzed Seeking Alpha.
Under the settlement reached with Apple, GTAT aims to keep the original bankruptcy filing court docs removed from public records, but company lawyers stated the company will disclose most of the information leading to the bankruptcy filing, according to Seeking Alpha.
GTAT abruptly filed for bankruptcy on October 6, company stock prices tumbled more than 92% on the day of the announcement to US $0.80. The company stocks now trade on pink sheets under GTATQ.
