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> Apple says that it intends to bolster the U.S. manufacturing sector by creating a $1 billion “advanced manufacturing fund” — with some of that initial money g

by jonknee 10y ago

> Apple says that it intends to bolster the U.S. manufacturing sector by creating a $1 billion “advanced manufacturing fund” — with some of that initial money going toward a company the tech giant is prepared to partner with, chief executive Tim Cook said. Amazing what passes for news these days. This sounds no different from what they normally do with their supply chain. Anyone remember GT Advanced Technologies? Apple wanted their sapphire glass for the iPhone 6 and fronted $439m for a factory in Arizona. The deal went south and Apple ended up owning everything and 700+ people were laid off. Apple turned it into a data center.

mcphage 10y ago
> The deal went south It wasn't that the deal went south, it was that the company was unable to produce & deliver the product that they said they could, at the price they agreed to. GT bet the company on being able to fulfill their contract with Apple, and failed.
- jonknee 10y ago
  > it was that the company was unable to produce & deliver the product that they said they could, at the price they agreed to How is that not the deal going south?
  - mcphage 10y ago
    Maybe it's not, but I think of "the deal went south" more as "negotiations broke down", instead of "it cost more to make the things than one party agreed to pay for them."
ghostly_s 10y ago
So something counts as business-as-usual now because it was attempted precisely once before, unsuccessfully, in the company's 40 year history?
- jonknee 10y ago
  I'd counter that it would be huge news if this was the first deal of its kind. GT's deal only became public because of a nasty bankruptcy case and Apple fought to keep it under wraps [1]. If GT had been able to produce the screens there wouldn't have been any public knowledge that Apple fronted them the money for the furnaces. Apple is a very secretive company and even with this announcement they conveniently left out where the money is going. This is business as usual, but there is now an incentive to brag about domestic investment because a simpleton is in the Whitehouse. [1] https://www.recode.net/2014/10/14/11631890/apple-asks-courts-permission-to-challenge-gt-bankruptcy-in-secret https://www.recode.net/2014/10/14/11631890/apple-asks-courts...

by jonknee 10y ago

mcphage 10y ago

> The deal went south It wasn't that the deal went south, it was that the company was unable to produce & deliver the product that they said they could, at the price they agreed to. GT bet the company on being able to fulfill their contract with Apple, and failed.

jonknee 10y ago
> it was that the company was unable to produce & deliver the product that they said they could, at the price they agreed to How is that not the deal going south?
- mcphage 10y ago
  Maybe it's not, but I think of "the deal went south" more as "negotiations broke down", instead of "it cost more to make the things than one party agreed to pay for them."

ghostly_s 10y ago

So something counts as business-as-usual now because it was attempted precisely once before, unsuccessfully, in the company's 40 year history?

jonknee 10y ago
I'd counter that it would be huge news if this was the first deal of its kind. GT's deal only became public because of a nasty bankruptcy case and Apple fought to keep it under wraps [1]. If GT had been able to produce the screens there wouldn't have been any public knowledge that Apple fronted them the money for the furnaces. Apple is a very secretive company and even with this announcement they conveniently left out where the money is going. This is business as usual, but there is now an incentive to brag about domestic investment because a simpleton is in the Whitehouse. [1] https://www.recode.net/2014/10/14/11631890/apple-asks-courts-permission-to-challenge-gt-bankruptcy-in-secret https://www.recode.net/2014/10/14/11631890/apple-asks-courts...