GTAT Sapphire Factory Mass Production

Apple Supplier and new material manufacturer--GT Advanced Technologies (GTAT) has revealed that its cooperation with Apple on sapphire factory is completed soon and will begin mass production.

Market predicts that Apple iPhone 6 will be launched in Sept. this year, but it is not likely to use sapphire screen on a large scale. Insiders hold a positive view towards sapphire application prospect, believing that mass production may reduce sapphire material costs and attract more manufacturers to use blue diamond screen.

According to GTAT, company revenue in the second quarter is 58 million dollars, far below that of last year, which was 1.68 hundred million dollars. Among the revenue, sapphire equipment and raw material make up 44.1 million dollars, photovoltaic 11 million dollars, polycrystalline 2.9 million dollars. GTAT posted a loss of 0.16 dollars per share, higher than expected.

Among GTAT business, photovoltaic and polycrystalline gross profit rate respectively reached 45% and 12% last quarter; sapphire gross profit rate was 20%. Despite the fact that blue diamond equipment gross profit rate was higher, the high costs of raw material factory co-invested by GTAT and Apple had dragged overall profit rate.

The CEO of GTAT claims that production equipment in Arizona is completed soon and sapphire panel will be in mass production. He showed great confidence in sapphire raw material long-term business increase based on the favorable feedback from customers.

So far, sapphire material has only been employed in iPhone 5 finger scanner and camera lens, but in the near future Apple will apply sapphire material in iPhone screen and more accessories. iAbrasive analysts predict that mass production may reduce sapphire cost, and that with sapphire capacity extension, GTAT will get rid of loss.

For more information, please visit: http://www.iabrasive.com/articles/category/diamond-news.