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In a recent statement, Hyundai confirmed they are in initial talks with Apple regarding car manufacturing. Shortly after, the South Korean automaker swiftly retracted posts, issuing a new statement removing all references to Apple.What happened next?Confidentiality Agreements: Guarding Secrets
Hyundai's recent move is undoubtedly the latest repercussion of its secretive and cautious policy towards potential suppliers and partners from Apple. Companies dealing with Apple must adhere to strict nondisclosure agreements even if they are publicly traded companies and Apple is a major customer.
Nondisclosure agreements (NDAs) are commonplace in the high-tech industry, but according to those working with Apple, the company prioritizes confidentiality over competition.
Apple's obsession with secrecy has always been one of the defining aspects of the company. In 2011, Apple even sold a shirt at the company's gift shop with the message: “I visited the Apple campus. But that's all I'm allowed to say”.
Apple's culture of secrecy may be closely tied to its co-founder, Steve Jobs. Jobs was a master marketer, turning product launches into surprise-filled spectacles. He relied on the element of surprise to keep presentations engaging when discussing new products.
Today, Apple still relies on 'surprise and delight' in its product launches and sees it as a key marketing strategy. Apple has held three separate livestream events this fall to unveil new Apple Watches, iPhones, and Mac laptops. All three presentations have drawn millions of viewers, who tuned in on YouTube to watch executives unveil their latest products.
However, Cirrus CEOs rarely mention the name Apple. For years, they've avoided it. In a 2017 investor presentation, a slide displayed various logos of their clients, but Apple's wasn't among them. Instead, there was an image of a brown box labeled 'TOP CLIENT.' Recent investors have simply stated that Cirrus Logic supplies products to 7 leading smartphone manufacturers.'Before we begin the Q&A, I'd like to note that while we understand the intense interest surrounding our largest client, as per policy, we do not discuss specific details about our business relationship,' stated Cirrus Logic Chairman John Forsyth during a discussion with analysts last November. This is also the phrase the company often uses before delving into their revenue sources. A Cirrus spokesperson also issued a similar statement in response to queries on this topic.Other public companies also employ euphemistic language when discussing business dealings with Apple. Last June, Broadcom CEO Hock Tan disclosed that the iPhone 12 would be released later than usual when discussing the company's revenue forecasts. However, he made no mention of Apple, only referring to 'our large North American mobile phone customer,' even though the previous deal with Apple was significant enough to be reported to the SEC.
In 2014, GT Advanced Technologies' bankruptcy proceedings showcased Apple's penchant for secrecy with its suppliers. In 2013, GT Advanced Technologies inked a deal with Apple to supply raw Sapphire balls for scratch-resistant iPhone screens. However, GT failed to produce Sapphire at Apple's Arizona facility, leading to bankruptcy declaration and Apple becoming a major creditor.During the bankruptcy proceedings, GT presented a contract labeled as confidential, stating that GT would pay Apple $50 million for each information leak. The contract referred to 3 separate confidentiality agreements Sapphire manufacturer had with Apple. GT also mentioned that the terms of their confidentiality agreement were also required to be kept secret.Another contract stated that any disclosure related to Apple required written consent. Apple later settled with GT through another agreement after the $50 million penalty term was revealed. A condition of the new agreement was that GT would keep secret about its 'description of its relationship with Apple'.Apple is currently refraining from commenting on the aforementioned story.Source: CNBC
