Apple supplier contract included $50m fine for confidentiality breaches

Details of the deals that Apple makes with its suppliers have emerged after one of its manufacturers filed for bankruptcy, according to reports.

Apple's iPhone 6: Could have featured GT Advanced Technologies' displays
Apple's iPhone 6: Could have featured GT Advanced Technologies' displays

Arizona-based GT Advanced Technologies had a contract with Apple to produce sapphire crystal displays for the iPhone 6.

However, the company filed for bankruptcy last week after Apple chose not to use the displays in the handset.

The Financial Times reports that contract details disclosed in the GT court filings show that "each breach of the confidentiality obligations will require GTAT Corp to pay liquidated damages to Apple in an amount of $50m per occurrence".

GT described its supplier agreement with Apple as "oppressive and burdensome" and said continuing under the agreement was "no longer a viable business option".

According to the FT, ahead of the court hearing tomorrow, GT’s lawyers are arguing that even more information about its relationship with Apple should be made public, in the interest of creditors and shareholders.

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