GT to apple out of the question, Apple will acquire GT?

Apple GT Advanced Technologies sapphire equipment supplier Inc. (GTAT) in the United States 6, announced without warning, the company has its direct and indirect Affiliated Companies specific with the US bankruptcy court in New Hampshire to according to the provisions of the bankruptcy law of the eleventh chapter proposed the active application for bankruptcy. The news triggered a market speculation that apple is no longer using the new Sapphire cover plate, resulting in the collapse of the stock price on the same day GTAT fell, as of the close of the stock fell 92.76%, to close at $0.8.

Affected by the negative impact of Taiwan sapphire industry chain stocks including Zhaoyuan, Xin Jia Jing branch, crystal diamond, crystal beauty, more peaks, shares in 7 Ruijie fell synchronization. The 8 day of the sapphire industry in early trading A shares market chain has full callback, the Dazu laser (002008.SZ) led by nearly 8%, Southwest Pharmaceutical (600666.SH), optical crystal (002273.SZ), roshow Technology (002617.SZ), East crystal electronic (002199.SZ) and other decliners.

Insiders pointed out that GTAT is the sapphire crystal growth equipment suppliers, because the yield is poor, unable to perform the contract to supply the apple, plus previously sold to Taiwan Crystal Factory machine caused by compensation disputes are the key factors that lead to GTAT filed for bankruptcy protection, which also indicates that the GTAT transition to the apple supplier failed.

But the latest news from Wall Street investment bank, Apple may be considering mergers and acquisitions GTAT. Rumor has it that, in order to solve the current plight of sapphire cover production, Apple may eventually be paid by very low cost to get all the equipment and technical assets associated with sapphire GTAT. Analysts pointed out that, in order to solve the urgent need, apple is engaged in the acquisition of GTAT related action is possible, but there is no further evidence of this rumor to make evidence.

Affected by the news, GTAT shares in the United States from 0.8 U.S. dollars at the time of the trough of $7 rose to $1.21, to close at $51.25%.

GTAT dilemma stems from the failure of the iPhone6 sapphire cover production plan

GTAT said in the announcement, the main reason for the application of bankruptcy protection is the company can not gain in the agreement with apple. The backlog is too long, and from 2015 onwards, the company is likely to fail to obtain the expected revenue from apple, in the worst case, even will not receive any income, leading to the company's revenue, profits and cash flow are greatly reduced. According to GTAT, as of September 29, 2014, the company holds approximately $85 million in cash. The court will allow it to continue its business, while taking the latest measures to solve the current problems and develop a restructuring plan.

Many analysts and industry insiders pointed out that the plight of GTAT's assets are indeed due to the failure of iPhone6 sapphire screen production plan. According to the former and apple signed a $578 million agreement, GTAT needs to provide a certain number of sapphire ingot delivery of apple, but due to long grain yield as expected, apple is not willing to continue to pay the remaining amount; plus equipment dispute case of Sapphire Crystal Diamond Factory Xin GTAT and Taiwan's case, the amount of equipment needed to return the $24 million diamond funds to Xin, lead to tight.

TrendForce's LEDinside said that this result is actually a trace to follow. Although GTAT has nearly 2000 long crystal furnace capacity, with 5.5 inch iPhone 6 Plus area conversion, can provide 10 million sapphire protection panel, but because the GTAT growth yield only remained at 40%, and from the ingot processed into a sapphire protective panel after the period of yield is also unable to overcome the situation led sapphire protection panel cannot import this year two iPhone new machine, GTAT and apple two companies also cut many employees responsible for this project.

GF Securities analyst Peng Qi also pointed out that in its latest GTAT point of view, this behavior is "cornered by apple made an extreme decision": "the company conducted several rounds of negotiations with apple, Apple hopes to give greater grace and in terms of time, but after several unsuccessful negotiations, only take this extreme measures. The scheme will be proposed by GTAT, at least 18 months after the bankruptcy law was given to GTAT. Apple is obviously to be hurt, if you do not agree with the implementation of the program, the initial investment funds will be all for naught, but also seriously affected the late iPhone products delivery plan. Peng Qi pointed out.

Pay attention to sapphire trend unchanged, Apple may come forward through mergers and acquisitions GTAT Foxconn

Insiders pointed out that GTAT filed for bankruptcy protection actually put apple in a very passive situation. In the sapphire industry chain, GTAT is a crucial part of the apple is the largest piece of sapphire material. If GTAT's bankruptcy protection application by the court, Apple's situation will be very passive, at this time, apple must make a rational choice. The move to make acquisitions GTAT, apple is likely to make one of the choices.

Some analysts said the possibility of direct acquisition of apple GTAT is lower, is more likely to choose Foxconn or blue reflection, Brian or other third parties to: "the first apple did not re acquisition of the assets of the company's habits, secondly because Apple is mainly a design company, GTAT is a manufacturing company, if the direct acquisition of apple GTAT, you need to do a divestiture. Apple's most likely way is to Foxconn or other companies to mergers and acquisitions, because Foxconn is a manufacturing company, it will be a lot of trouble to come forward mergers and acquisitions. "

The analysts pointed out that the biggest problem is GTAT