Apple’s sapphire supplier GT Advanced Technologies has announced that its has filed for chapter 11 bankruptcy. The company expects the United States Bankruptcy Court for the District of New Hampshire to authorize GT to continue “business as usual” while focusing on reorganization. GT Advanced had approximately $85M in cash as of Sept.
29; the company is now hoping to obtain debtor-in-possession financing for a boost in funds. “GT has a strong and fundamentally sound underlying business,” GT President and CEO Tom Gutierrez said. “Today’s filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.”
It’s unclear what the bankruptcy filing means for GT’s working relationship with Apple.
Not only does Apple use sapphire for its Touch ID sensors and iPhone camera covers, but the stainless steel and 18-karat gold models of its upcoming Apple Watch will feature sapphire screen covers. There were reports that Apple would use sapphire more extensively in the newest iPhone 6 models, including front screen covers, but the parts never materialized. Reports have variously suggested that the sapphire screen covers missed shipment deadlines to be included in the iPhones, or that they failed damage tests prior to being included.
