Thank you for explaining this however from reading around reports say GTAT failed to meet Apple's demand for the glass , they were underproducing , so the deal was cut and now they have to repay what was pre-payed .
Not necessarily, simple cost-volume-profit-analysis dictates Apple should continue to outsource. By in-sourcing (buying GTAT), the manufacturing costs become fixed costs and reduces the contribution margin income and reduces the margin of safety for profitability: Angering Carl Ichan. My bet is Apple will continue to outsource and find a new supplier. GTAT will have to find a new apple.