In 2013, Apple invested a large amount of $ 578 million in sapphire display technology. The money will be paid four times to GT Advanced Technologies, which is now a partner to supply sapphire pads for the Home and iPhone cameras. This plan aims to produce on a large scale this super hard material for the iPhone screen, to replace Gorilla Glass.
However, in the following year, problems in the production process forced GT to withdraw from this business. The company closed the factory, sold all of its kilns and announced a debt settlement plan. However, things have not ended with this company, when yesterday, the US Securities and Exchange Commission made allegations of fraud against the former CEO of the manufacturer.
The SEC petition accused GT of misleading investors about its ability to produce sapphire materials, along with an improper allocation of Apple’s $ 300 million debt. “In order to avoid being considered debt in the present, what will lead to an immediate impact on their status as a concern, GT has made an unfounded argument that Apple broke part of the contract, in order to free GT from its capacity obligations.“
The SEC accused Mr. Thomas Gutierrez, who later became CEO of the company, for distorting the production capacity of GT in the 2014 earnings report and then issued “unfounded forecasts of sales”. Later that year, the company filed for bankruptcy, only to get out of its current business and become a private company.
“GT and their CEO have painted a pink picture of the company’s ability and ability to acquire capital, has become very important for the existence of GT while they know in advance that the information will bring catastrophic consequences for the company.” The head of the SEC Executive Department, Anita B. Bandy said in his statement. “We will continue to suspend the responsibilities of executives when they violate the most basic responsibility of giving complete and truthful information to investors.“
Apple then no longer relied on GT to make the iPhone different from the device using Corning’s technology. The collapse of GT helped Corning’s Gorilla Glass glass continue to appear popular on the iPhone.