April 30, 2024

Apple to Have Enough Sapphire Crystal to Cover iWatch, 4.7-Inch iPhone 6, and 5.5-Inch iPhone 6?

Posted June 13, 2014 at 2:14pm by iClarified · 18570 views
Apple's Mesa sapphire operations will produce enough supply to cover the iWatch, the 4.7-inch iPhone 6, and the 5.5-inch iPhone 6, reports Matt Margolis on Seeking Alpha.

GT Advanced is apparently waiting on the 4th and final prepayment from Apple. The delay is believed to be related to the ramp up of equipment inside the Mesa facility. The plant should be completed in June, coinciding with the receipt of the final prepayment from Apple.

Margolis says that his supply chain checks indicate that slightly more than 2,500 furnaces have already been installed. Sapphire boule size is expected to range between 200 and 235 kg. He says this should provide Apple with an ample supply of sapphire crystal.

As a result of my most recent supply chain check I believe that the Mesa sapphire operations will have ample supply to cover the iWatch, the 4.7" iPhone and the 5.5" iPhone with full sapphire cover glass in 2014. Additionally, the maximum sapphire screen capacity of the Mesa facility is likely to exceed 200m annual units. My most recent supply chain check confirms that GT's sapphire business with Apple is likely to approach or exceed $2B annually or $2.00 earnings per share using an estimated ASP of $10 per unit.

Apple is expected to release the iWatch and iPhone 6 this fall. Recent reports suggest the 4.7-inch iPhone 6 will be released first, followed by the 5.5-inch model a bit later. Check out some photos of the alleged iPhone 6 here.

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