Apple's sapphire source declares bankruptcy

GT Advanced Technologies, which has a supply
relationship with Apple after an agreement struck late
last year, has filed for Chapter 11 bankruptcy protection .
The company will continue to operate as normal despite
the filing, which is designed to protect its assets and
operating budget from debt while it restructures and re-
finances its obligations.
Apple’s relationship with GT Advanced Technologies
includes a contract that covers $578 million worth of
synthetic sapphire production , which it now seems
apparent is being used at least for the construction of
the Apple Watch, which boasts sapphire on its higher-
end models, though it uses strengthened glass (like the
iPhone 6) on the entry-level Sports editions.
While many analysts and observers had anticipated GT
Advanced Technologies supplying engineered sapphire
glass for the iPhone 6, Apple instead went with its own
reinforced glass product, which is similar to the popular
Gorilla Glass option used by may other smartphone
OEMs. Some speculate that the sapphire screens weren’t
ready for the yields needed for iPhone 6, prompting a
late-stage switch to the more readily available glass
material.
The Chapter 11 filing might even make GT a more
attractive business partner oonce it restructures, and
shouldn’t impact any ongoing relationship with Apple,
though more details are required to make clear exactly
how their arrangement might be affected.