GT Advance closing plants in Arizona and Massachusetts, calls Apple deals 'oppressive and...

October 13, 2014

GT Advanced Technologies has announced today their intention to close their plants in Arizona and Massachusetts, a move which will see 890 people lose their jobs. The sapphire supplier places the blame for their current financial woes squarely on Apple, saying that the agreements with Apple were problematic, and that ending their deal was necessary for the life of the company.

From the Wall Street Journal:

In filings with U.S. Bankruptcy Court in New Hampshire, GT Advanced called its agreements with Apple to produce sapphire materials for iPhones "oppressive and burdensome" and that terminating their deal was the only way to stop the bleeding.

GT Advanced is also seeking permission to pursue future claims against Apple. The company believes that they have many claims against Apple coming out of their business relationship. GT Advanced has previously made parts for the iPhone iSight camera, as well as the Touch ID fingerprint reader.

For its part, Apple says that they are focused on preserving jobs at GT's Arizona facility. They also said that they found the decision to declare bankruptcy surprising.

Do you think that GT Advanced is right to blame Apple for their current situation? Sound off in the comments.

Source: The Wall Street Journal