Apple has accumulated a mass of accolades over the years, so the perils of being an Apple supplier are often overlooked

Jay Soloff

Argonath Financial

Apple has accumulated a mass of accolades over the years, so the perils of being an Apple supplier are often overlooked. However, the world got to see first-hand this week how reliance on Apple can utterly destroy a company. If you haven't seen the shocking story of GT Advanced Technologies (GTAT), it's worth checking out the attached article. Essentially, GTAT was supposed to make sapphire glass screens for the iPhone 6 line. Needless to say, it was a huge contract. About a month before the release, Apple changed it's mind and went with a different glass product/provider. The contact cancellation is requiring GTAT to pay back a $578 million loan to Apple - and is forcing the company to file for bankruptcy. Keep in mind, GTAT is a company that has a successful solar power component business as well. Yet, it didn't keep the stock from plunging over 90% and going from a $1.5 billion market cap to $175 million... in one day. It's really an incredible story. (VIEW LINK)


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Argonath Financial

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