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Re: funkjt post# 61128

Thursday, 10/30/2014 2:48:35 PM

Thursday, October 30, 2014 2:48:35 PM

Post# of 232489
Your post is ludicrous.

Apple should have almost the entire benefit regarding GTAT as they invested HALF of a billion dollars into that factory. They offered GTAT a lopsided opportunity which would have been huge had they been able to capitalize on it. GTAT could have always countered the offer but they were probably horrible negotiators.

LQMT got a good deal from Apple. LQMT were going bankrupt. Apple saved LQMT and agreed to commercialize technology which would have never been commercialized had it not been for Apple's lifeline. Apple is investing the same amount into LQMT as GTAT did if we believe Atakan Peker, (300-500 million) and a lot of resources to help us protect our technology and future patents.

Also, LQMT does not have any sales targets that they must keep to keep Apple happy. The only thing they must do is keep their mouths shut, period. I'd say that's a pretty good deal. The reason why we received this deal is because the potential for Apple to achieve margin expansion through lower post processing costs would allow them to achieve greater future profitability.

If technology companies keep lowering their prices, it will allow Apple to continue being a premium brand and will also allow Apple to lower prices (worst case scenario) while maintaining margins.

It's a powerful proposition.