So, if the yield-loss issues and plant management issues were to be expected, what did cause this implosion? A lack of two things: time and money. Time to sort out the manufacturing issues and the money to pay for that time. Which really leads back to the executive management team’s poor planning. Manufacturing is like growing a crop, and you can’t plant corn and demand that a crop appear by next Tuesday.
It sounds like Apple wanted to change the deal with GTA so that instead of only furnishing the sapphire furnaces, GTA would take on the entire manufacturing process. This would have led to an exponential growth in profits for GTA. But like a general assessing the risks of sending his troops into battle, GTA’s CEO needed to have a reasonable strategic plan in place and weigh the risk of failure before committing his troops.
This isn’t a story of manufacturing incompetence. It’s a picture of executive mismanagement.