Apple might be facing a lawsuit from a supplier of sapphire glass for the iPhone 6 because of "oppressive" and "burdensome" contracts that were agreed for before the company went bankrupt.
The company, GT Advanced Technologies, said on Friday that it was preparing to close plants in Arizona and Massachusetts. The closure will result in the loss of 890 jobs out of a workforce of 1,100. GT is losing about $1 million a day while the two plants remain open. GT plans to take action against Apple following the decision.
"GT believes that it has many claims against Apple arising out of its business relationship with Apple," the company said in a filing with the US Bankruptcy Court in Manchester, New Hampshire.
GT's argument is that the court should terminate its contracts with Apple, which they feel imposes unfair obligations on GT.
On Monday, GT filed for bankruptcy claiming it has $85 million of cash as of September 29 and listed assets and liabilities in excess of $1 billion.
Apple did not make any comment towards the situation but previously said "We are proud of the jobs we've helped create in Arizona through Apple's domestic manufacturing initiative and our state-of-the-art facility powered entirely by renewable energy sources."
"We are focused on preserving jobs in Arizona following GT's surprising decision [to file for bankruptcy] and we will continue to work with state and local officials as we consider our next steps."
Apple currently uses small amounts of sapphire glass in the camera lenses and home buttons. It was originally believed that the phone's entire screen would be made of sapphire glass. Instead, it is made of ion-strengthened glass.
How Apple will respond to this lawsuit remains unknown but it is likely that they will not shy away from a fight, as proven in their previous court case with Samsung.
The company, GT Advanced Technologies, said on Friday that it was preparing to close plants in Arizona and Massachusetts. The closure will result in the loss of 890 jobs out of a workforce of 1,100. GT is losing about $1 million a day while the two plants remain open. GT plans to take action against Apple following the decision.
"GT believes that it has many claims against Apple arising out of its business relationship with Apple," the company said in a filing with the US Bankruptcy Court in Manchester, New Hampshire.
GT's argument is that the court should terminate its contracts with Apple, which they feel imposes unfair obligations on GT.
On Monday, GT filed for bankruptcy claiming it has $85 million of cash as of September 29 and listed assets and liabilities in excess of $1 billion.
Apple did not make any comment towards the situation but previously said "We are proud of the jobs we've helped create in Arizona through Apple's domestic manufacturing initiative and our state-of-the-art facility powered entirely by renewable energy sources."
"We are focused on preserving jobs in Arizona following GT's surprising decision [to file for bankruptcy] and we will continue to work with state and local officials as we consider our next steps."
Apple currently uses small amounts of sapphire glass in the camera lenses and home buttons. It was originally believed that the phone's entire screen would be made of sapphire glass. Instead, it is made of ion-strengthened glass.
How Apple will respond to this lawsuit remains unknown but it is likely that they will not shy away from a fight, as proven in their previous court case with Samsung.
Apple Faces Another Court Case Filed by Sapphire-Glass Maker
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October 11, 2014
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