Apple said on Wednesday that it was surprised by supplier GT Advanced Technologies' bankruptcy filing this week, and that it is now trying to figure out its next steps.
GT Advanced, slated to supply scratch-resistant sapphire displays from a new Arizona factory Apple is helping bankroll, filed for bankruptcy on Monday.
The company has offered little explanation as to why it filed however, according to Reuters.
Apple, in its first public response, said it was working with Arizona officials on what to do next.
"We are focused on preserving jobs in Arizona following GT's surprising decision and we will continue to work with state and local officials as we consider our next steps," spokesman Chris Gaither said, according to Reuters.
GT's first Chapter 11 bankruptcy court hearing is set for Oct. 9.
The New Hampshire-based company confirmed that it will explain what led to Monday's shocking bankruptcy filing during the hearing.
The filing wiped out 90 percent of the sapphire supplier's market value, according to Reuters.
Industry insiders and Wall Street analysts can only speculate for now as to what triggered the move until the hearing. Apple's supply chain is believed to be one of the best-run in the consumer electronics business.
GT's shares had more than doubled in the nine months between November's announcement of the new Arizona plant and the launch of Apple's new large-screen iPhones on Sept. 9.
"Having an exclusive factory for one customer means you don't have the same reassurance as producing parts in response to demand. On the contrary, it's high risk," said a person familiar with Sharp's plans, according to Reuters. "The volume (produced by Apple) is very high so it can bring the factory to 99 percent of capacity, but if there are no orders, then the factory will lie idle."
Investors were confident that GT would replicate Corning Inc's success with Gorilla Glass.
Shares of GT were up 30 percent at $1.57 on Wednesday morning, compared to Monday morning, when shares opened at $11.06, according to Reuters.
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