Apple has a way of preventing leaks about its upcoming devices that spoil the surprise for many waiting fans – it penalizes its suppliers $50 million for every unauthorized leak of product information.
This news emerged through the court filings made by Apple's partner and supplier GT Advanced Technologies. Surprisingly, the company filed for bankruptcy protection. According to the documents, GT Advanced Technologies was subjected to fines for violating confidentiality agreements it has signed with another company.
This hints that GT Advanced Technologies is pertaining to Apple since the tech giant is one of the company's key partners and has strict rules regarding confidentiality. The supplier bravely stated that its poor financial standing is due to "oppressive and burdensome" agreements with its business partner.
Amidst the filing of bankruptcy due to the dire financial straits of the company, GT Advanced Technologies is faced with a class-action lawsuit from Apple shareholders as the company allegedly "misrepresented and/or concealed" its financial health, which is a prime requirement to be an Apple partner.
GT Advanced Technologies was mentioned in the headlines early this year for its partnership with Apple along with the latter's expansion plans for its plant in Arizona. Apple paid $578 million to the company to update its facilities and furnaces in the factory used to make synthetic sapphire. Reports stated that the supplier was in-charge of the production of synthetic sapphire screens to be included in the new Apple Watch.
Due to the bankruptcy, GT Advanced Technologies claimed that it will lay off 890 employees and will shut down factories in Arizona and Massachusetts. The tech giant has not commented on any of the latest developments.
However, Apple released in a statement last week, "We are focused on preserving jobs in Arizona following GT's surprising decision and we will continue to work with state and local officials as we consider our next steps."
