GT Advanced Technology Inc. has recently filed for bankruptcy after their stocks declined by 90%. This company, based in Arizona, depicts the reality of the stock market and how in a few seconds a company can go from being worth 1.5 Billion to 175 million. It is very evident that GT’s glass sapphire has somewhat caused this enterprise to declare bankruptcy. Why? Let us take a look.
Photo Courtesy To:http://www.cultofmac.com/267068/everything-wanted-know-sapphire-glass-afraid-ask-qa/
Many analysts suggest different reasons of why this odd situation occurred. Yet, from my perspective, only one reason seems to have triggered this catastrophe. Apple released a statement declaring that glass sapphire was not used in the new version of the IPhone; simultaneously GT stocks plummeted. Coincidence? I think not.
First of all, I do not believe that there is a big difference between the glass that GT supplies and other glass companies. There have been many “drop tests” to prove that most glasses have the same durability. Next, if you look into how much GT was able to supply; it didn’t seem to be enough to satisfy the amount of glass that Apple required. Yet, it is interesting to see how dropping a resource for only two products can cause such dramatic changes.
Why do you think GT filed for bankruptcy? Is Apple really the only cause?
http://www.businessinsider.com/gt-advanced-files-for-bankruptcy-2014-10