The future production of the Apple Watch could potentially have a spanner thrown in the works after the company that produces its sapphire crystal screens, GT Advanced Tech, filed for bankruptcy.
GT Advanced Tech, which has been supplying Apple with its screens, released a statement detailing its latest financial report. Despite being a supplier to one of the world’s largest companies, GT Advanced Tech has been unable to keep itself in the black.
According to its figures, as of 28 September this year, the company has only US$85m in cash reserves which it has deemed unsustainable.
What this means for the Apple Watch, which is due for release in the beginning of the new year, remains to be seen, but from GT Advanced Tech’s perspective at least, the company reiterated it will be business as usual for the time being.
In its statement, president and CEO of the company, Tom Gutierrez, said, “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.”
The company filed for chapter 11 voluntary bankruptcy under US law, which should give it greater control during its crisis by allowing it to continue, while negotiating with its creditors.