GT Advanced settles with Apple after bankruptcy, exits sapphire production

Now that Apple's supplier of sapphire products has gone down the pan, that means Apple is now in the sapphire manufacturing business.

Image via CNET/CBS Interactive

GT Advanced has reached an agreement with Apple, under which it will cease making sapphire products.

The company will be released from "exclusivity obligations" with Apple. GT will now focus on supplying equipment to make sapphire products, rather than make them itself.

Apple will recover the $439 million it invested in the company's ability to make products for it, without interest.

GT, which supplied Apple with sapphire products it uses in its iPhone and iPad camera lenses and Touch ID fingerprint sensors, filed for bankruptcy earlier this month.

The former sapphire maker wanted to keep the reasons for what went wrong with Apple under wraps, citing non-disclosure agreements . If broken, a $50m damages penalty would be triggered.

GT said on Thursday it would shut down its sapphire production facilities in Arizona and Massachusetts, laying off more than 650 employees in the process. 

(via Reuters)