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Its not the size of the money, its what the money does:gobbling up scarce resources in advance hence locking out rivals from crucial supplies.
by sc90 13y ago
Its not the size of the money, its what the money does:gobbling up scarce resources in advance hence locking out rivals from crucial supplies.
- maxerickson 13y agoThe first phrase of the article is "Apple is building a manufacturing plant in Arizona". Space to build manufacturing plants is not scarce. They are actually even re-purposing one. I guess GT Advanced Technologies might have some scarce expertise.
- craigyk 13y agoI'm so glad I bought a bunch of GTAT a year ago.
- aaronbrethorst 13y agoWhat inspired you to buy stock in the company a year ago?
- craigyk 13y agoconvergence of three things really. When I heard the iPhone 5 was going to use a sapphire lens cover I decided to lookup more on the technology and found that GTAT had what looked like the best know-how in its manufacture. I had also previously seen a story on some tech being created by a company called Twin Creeks that looked pretty cool, and was surprised to see that GTAT had acquired it's assets. That made me think the company was being aggressive in it's pursuit of acquiring/developing cutting-edge manufacturing processes. Plus, I think solar power is a major part of the future and things will be pretty bleak if it can't deliver long-term, but I like to be an optimist, so why not put my money there?
- aaronbrethorst 13y agoVery interesting. Thanks for the insight!
- jws 13y agoIf I understand their business model, GTAT wanted to be in the furnace and process business and sell those to other companies that would do the manufacturing. It looks like no one wanted to be one of those companies. There is no "scarce" here. GTAT wanted to make and sell a lot of this capacity, they just couldn't get a buyer to risk their capital. From that standpoint it makes perfect sense for Apple to pony up. They want the end product. There is no need for a third company to take risk, provide capital, and make extra profit. Apple provides the capital, takes the risk.
- IBM 13y agoThe "scarce" is their ASF furnaces that enable production at scale and low cost, which is currently being repurposed for their own contract with Apple.
- Moto7451 13y agoSapphire glass uses synthetic Sapphire so this is more like building another Gorilla Glass factory than hoarding the output from a Diamond mine. http://en.wikipedia.org/wiki/Sapphire#Synthetic_sapphire http://en.wikipedia.org/wiki/Sapphire#Synthetic_sapphire