The financial implosion of Apple supplier GT Advanced Technologies Inc this week offers a dramatic illustration of how the iPhone maker can put the screws to suppliers willing to take a short-term risk for future riches.
GT Advanced has offered little explanation as to what prompted its surprise bankruptcy filing on Monday. The company also did not respond to requests for comment.
Read MoreApple's supplier GT Advanced files for bankruptcy
Analysts and industry insiders, however, attribute GT Advanced's apparent cash-flow problems to the unfavorable terms of a deal with Apple that involved building an expensive Arizona factory to make scratch-resistant sapphire glass exclusively for the Cupertino, Calif.-based company, but which Apple was under no obligation to buy.