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GT Advanced, the provider of the sapphire for the iPhone, announces a bankruptcy plan

Colega, ¿dónde está el zafiro de mi iPhone 6?

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This morning, GT Advanced Technology surprised everyone by requesting Chapter 11 . A company with problems paying its debts asks to avail itself of this legal resource in order to be able to reorganize its debt and its payment . Thanks to this system, they can continue with the normal operations of the company without fearing that creditors will rush to collect and stifle economic activity.

GT Advanced, the provider of the sapphire for the iPhone, announces a bankruptcy plan
GT Advanced, the provider of the sapphire for the iPhone, announces a bankruptcy plan

GT Advanced is a regular Apple supplier since several years , taking care of the sapphire lens that covers the camera from iPhone 5 and the button that protects the Touch ID sensor from iPhone 5s. For months it was rumored that the new iPhones 6 would incorporate a screen of this same material. The reality turned out to be different for several reasons, including a greater need for energy to illuminate the screens, the low flexibility of the sapphire and resistance to shocks or the cost of the material itself.

Apple’s plans to incorporate sapphire into its star phones have never been made public. It is possible that at first they did think about protecting the screens with sapphire, invested in the company but in the end did not get the expected results, throwing back any future orders. This could be the cause of the bankruptcy filing.

Although the word “bankruptcy” has a very negative meaning, it should be noted that it does not imply a closing of operations. This legal remedy is designed to allow a company to redirect its destiny and return to the path of profitability without the continuous pressure of debt.

Since Apple’s relationship with this company and the use made of its components is known, there has always been speculation about a possible acquisition. In this way, the technological giant would be securing the supply and technology of its glass and becoming even more vertically integrated. Something that after the purchase of Authentec, the firm behind Touch ID, would not be so far-fetched. But the reality is that GT Advanced is not the only supplier of these glasses as Authentec was with its technology.

Remember that the top models of the Apple Watch will incorporate a sapphire crystal in their displays. Sapphire has always been a material used in haute horlogerie for a long time, fitting in with the focus on luxury that Apple wants to give to its smart watch. GT Advanced may just need to get to that fuzzy date of early 2015 when Apple’s smart watch is expected to be launched to refloat its business. Will the company make it to that point alive?

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