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Apple Sapphire Supplier Breaks

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.. obvious lesson is a dumb one.

GTAT’s contract with Apple is, by most reasonable standards, terrible. GTAT is obligated to produce a minimum amount of sapphire for Apple (at an Apple factory), but Apple is under no obligation to buy any — and GTAT has exclusivity obligations, so it might not even be allowed to sell to anyone else.

via Apple Sapphire Supplier Breaks – Bloomberg View.

HP, Dell, Cisco Face Threat of Cheap Servers From Their Suppliers | Businessweek


The risk of relying on another company to make your product is that at some point it will start selling its own version without you, at a discount.

Now it’s happening to Silicon Valley, as contract manufacturers that tech companies rely on to build high-end computing hardware sell servers directly to customers.

via HP, Dell, Cisco Face Threat of Cheap Servers From Their Suppliers – Businessweek.