Wednesday, October 29, 2014

GTA Bit Off More Than It Could Chew In Deal With Apple, And Apple Picked the Wrong Partner

Source:  Bloomberg.

The Bloomberg post does shed some light on the failed venture between Apple and bankrupted GT Advanced.  While all such deals carry risks, the amount of risk GTA took on was more than it bargained for.  I believe the part that in the post where Apple told GTA that it required the same terms from other supplies.  GTA simply was not the right company or had the right people to follow through.

It does sound like I'm placing the bulk of the blame on GTA but I think it's Apple that picked the wrong partner for sapphire covers that was obviously meant for the iPhones.  Had this deal worked out, it would have been a selling point for Apple that would further set the iPhone apart from competing devices. 

Having said that, there are few companies out there that can take on this kind of risk and Apple is obviously one of them. 

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