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Wednesday November 20, 2019

updated - November 20, 2019 Wednesday EST

Don't Mess With Apple: $50M Fine For Suppliers Leaking Apple Secrets

Oct 28, 2014 10:19 PM EDT | By Adelyn Torralba
Tags
Apple, Apple News, Apple Leaks, Apple latest news, Apple Update
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Apple's Sapphire supplier GT Advanced Technologies filed for bankruptcy three weeks ago. Recently, the details about the confidentiality deal between Apple and GTAT are starting to emerge.

Supplier's like GTAT are not even allowed by Apple to even admit the existence of a non-disclosure agreement. Any supplier who would dare divulge any confidential information about the product they are making for Apple will have to pay a stiff fine of $50M USD.

GTAT lawyers are demanding that more information from the non-disclosure agreement be made public in order to plead their case as well as to protect the interest of company's creditor and shareholders. They call the agreement between Apple and GTAT as "oppressive and burdensome".

Late last year Apple and GTAT signed a deal where in Apple will lend the Sapphire maker $578 M USD in order to set up a manufacturing plant in the state of Arizona. Both parties would not say where the synthetic sapphire will be used. Rumors began speculating that the sapphire products will be used for the iPhone 6 glass screens. This rumor was bolstered when Apple announced that the Apple Watch will be fitted with a Sapphire screen. GTAT shares rose as a result of its partnership with Apple and rumors about iPhone 6 having a sapphire screen.

When the iPhone 6 was presented to the public and specifications were later revealed that there's no sapphire glass has been installed in the iPhone 6. Instead, the new Apple smartphone was fitted with a Gorilla Dow Corning glass. A CNBC report hinted that GTAT may have failed to pass the level of quality demanded by Apple for its parts.

GTAT is blaming Apple for its financial woes and may file a suit against the tech giant. GT shareholders however are blaming the management for misleading them about the real financial position of the company or failure to report that it failed the quality assurance test from Apple. A class action suit was filed by the shareholders against the company's top management.

GTAT will now close its sapphire manufacturing plants in Arizona as well as Massachusetts. At least 890 workers will lose their jobs as a result of the shutdown.

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