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Technology Stocks : GT Advanced Technologies Inc.
GTATQ 0.0215-4.4%Mar 17 4:00 PM EDT

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To: Sam who wrote (48)10/8/2014 2:37:15 PM
From: Jerome  Read Replies (1) of 86
 
Its my that Apple taking possession of these furnaces would be a huge mistake.

I have worked with these high pressure furnaces ( autoclaves).....and they can be very problematic.

The first step is preparation of the material to be baked. There are a lot of trade secrets in these recipes and if the prep work is not done very precisely the end product is junk.

Its a very time consuming production process.

The baking time can be between 6 and 14 days, Depending on the size of the mix.

The cooling time is between 2 and 4 days Try cooling it to fast and the product is ruined.

The polishing of the boule another day or two.

After cooling and some polishing it can be determined if the end product is usable.

Owning the furnace is the easiest part of the plan.

This GTAT mess points out the liabilities of doing business with Apple. Apple is just like Walmart....they can promise you a lot of business if you ramp up production...and then cut you out of the program on very short notice.

GTAT should have known better and had a more flexible contract with Apple. But the lawyers will do well in this situation...they always do.
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