GT Advanced, the company pegged to make sapphire screens for the iPhone 6, only to go bust when component yield was found to be dangerously low, suffered from chronic mismanagement and inexperience, a new report claims.
GT had blamed Apple for its demise, saying stringent terms and a bullying culture caused it to fail. But now Apple’s side of the story has emerged via the Wall Street Journal, painting a wholly different picture.
It’s said that GT hired so many staff in the wake of their deal with Apple that up to 100 people didn’t even know who they reported to. Some staff said they had nothing to do, due to the fact that furnaces required for making sapphire had not been delivered. “We just kept sweeping the floors, over and over,” said one worker.
After spending millions and failing to meet targets, Apple withheld a loan, which led to GT filing for bankruptcy. Staff at its Arizona plant lost their jobs and its deal with Apple was declared null and void.
The saga reveals just how tough working with Apple is for some suppliers and has shone a light on business practices at Cupertino.