Apple’s designers and their interest in Sapphire glass has meant investors have been paying more attention to GT; its value has tripled since this time last year, but the upcoming iPhone 6 may damage that attention. GT is building a facility in Arizona in which to manufacture Sapphire glass for Apple devices. Due to leaked information, we know that the iPhone 6 will likely use Sapphire to make the screen more scratch-resistant. That means that GT Advanced will have to quickly ramp up its new business.
Until now, GT sold manufacturing equipment to other producers but hasn’t actually ever been a full-time Sapphire supplier.The plant in Arizona is almost done; on its earnings call, GT said that that it was starting to move to volume production but they don’t expect to be fully operational until early in 2015. This information means that it might not be the only supplier of Sapphire for the iPhone 6, if it does indeed become the glass used in the displays. Where the risk comes in is if Apple decides to go elsewhere for the product; Apple isn’t locked into any deal with GT Advanced. Further to that, it’s likely Apple put some conditions on GT selling Sapphire-producing equipment to other parties. Hopefully, for GT Advanced’s sake, the deal goes well.
