Apple to Sapphire Supplier: ‘Put on Your Big Boy Pants and Accept the Agreement’

Kif Leswing, reporting for GigaOm:

Even if you’re uninterested in GT Advanced Technologies, there are a number of details about how much power Apple exercises over its suppliers.

Squiller says that Apple did not ever really enter into negotiations, warning that GTAT’s managers should “not waste their time” negotiating because Apple does not negotiate with its suppliers. According to GTAT, after the company balked, Apple told GTAT that its terms are standard for other Apple suppliers and that GTAT should “put on your big boy pants and accept the agreement.”

GTAT’s take seems to be:

  1. Apple doesn’t negotiate terms.
  2. Apple’s terms were onerous.
  3. We accepted Apple’s terms.

Friday, 7 November 2014