The iPhone 6 and iPhone 6 Plus debuted and got released last month, fulfilling a lot of expectations but missing out on others. For one, the devices were believed to sport sapphire displays, something that seemed a very distinct possibility several months ahead of the launch, due to Apple’s previous acquisition of GT Advanced. But as that possibility became less and less likely, with both devices not coming with sapphire displays after all, the company’s stock went on a nosedive. Now it has been announced that GT Advanced has filed for Chapter 11 bankruptcy, with the sapphire supplier’s shares suspended in NASDAQ trading.
The share price decline was especially telling following the iPhone 6 and iPhone 6 Plus launch, when it became apparent that neither phone came with a scratch-resistant, ultra-durable sapphire display. Apple did use sapphire as a material for the iPhone 6 and 6 Plus’ rear camera lenses and Touch ID fingerprint sensors, as well as a material for the Apple Watch’s display. But with the disappointment that neither new iPhone would come with a sapphire screen, that proved to be quite disastrous for GT Advanced.
Despite its bankruptcy filing, GT Advanced maintains that it plans to operate as usual, and said today that it still has about $85 million worth of cash reserves in its kitty. “GT has a strong and fundamentally sound underlying business,” read a prepared statement from company CEO Tom Gutierrez. “Today’s filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet.”