GT Advanced Bankruptcy Unlikely to Affect Apple Watch, But Sapphire for Future iPhones in Doubt

Discussion in ' News Discussion' started by MacRumors, Oct 7, 2014.

  1. MacRumors macrumors bot


    Apr 12, 2001

    A new report from KGI Securities' Ming-Chi Kuo suggests that Apple's sapphire partner GT Advanced Technologies' recent filing for Chapter 11 bankruptcy protection will not affect its upcoming Apple Watch. However, he cautions that it does raise concerns about the possibility of future iPhones using sapphire displays.

    ... but it raises uncertainties on iPhone touch panel use of sapphire cover lens.

    Kuo suggests that GT Advanced's ASF (advanced sapphire furnace) sapphire ingot isn't the only one it's considering to use for iPhone displays, though it is the company's preference due to the superior drop-test performance of GT Advanced's sapphire. And while Kuo believes that Apple still wants to use sapphire displays for iPhones, the bankruptcy of GT Advanced will likely result in bottlenecks in ASF sapphire production. Other sapphire ingot suppliers are unlikely to benefit, as they do not measure up to Apple's higher drop-test standards.

    Apple had been widely expected to include sapphire display covers on some iPhone 6 models, but that development did not arrive. As Kuo notes, Apple still plans to use sapphire displays for Apple Watch, as it uses an ingot less than 6-inches and Apple's standards for drop-tests on the Watch are not as stringent as those for iPhone.

    Article Link: GT Advanced Bankruptcy Unlikely to Affect Apple Watch, But Sapphire for Future iPhones in Doubt
  2. Alonso Quijano macrumors 6502

    Alonso Quijano

    Jul 17, 2013
    Apple would save them from bankruptcy if they really depended on them for :apple: Watch production
  3. Technarchy macrumors 604


    May 21, 2012
    GT Advanced...

    Golden ticket issued...lost it.

    Pulled an massive defeat from the the jaws of victory.

    These might be the biggest Wall Street fail kings since
  4. aaronvan Suspended


    Dec 21, 2011
    República Cascadia
  5. Amacfa macrumors 68000


    May 22, 2009
    I'd be happy with just 2gb of ram. Sapphire is more a luxury
  6. rdlink macrumors 68040


    Nov 10, 2007
    Out of the Reach of the FBI

    What is all the drama around this filing? It's just a cash flow issue. Chapter 11 only serves to keep your creditors at bay until you get your financial house in order. It's essentially a court supervised negotiation of deferred payment of debt.
  7. dannyyankou macrumors G3


    Mar 2, 2012
    Scarsdale, NY
    Pretty bold statement considering we don't even know the release date yet.
  8. Keirasplace macrumors 601

    Aug 6, 2014
    Bet $1000 dollar on that and maybe I'll respect whatever your saying.


    He's batting 150% and issuing such bold statements 12 months in advance. Kinda bold, maybe he should try batting against little leaguers before saying stuff like this.
  9. aaronvan Suspended


    Dec 21, 2011
    República Cascadia
    I have a $40.00 bill. Who's gonna hold the bet? Dinah-Moe Humm?
  10. farewelwilliams macrumors 68020

    Jun 18, 2014
    drama is that people lost a crap load of money now the stock is ~$1
  11. eastamherstbias macrumors 6502

    Mar 18, 2012
    Based on nothing. Version 1 is going to have crappy battery life but the fun starts with versions 2/3 as it gets refined.
  12. linkgx1 macrumors 68000

    Oct 12, 2011
    Now mysteriously the rumors of the sapphiPhone are going ti disappear. And were's dat dere iPad Pro?
  13. Mr. Gates, Oct 7, 2014
    Last edited: Oct 7, 2014

    Mr. Gates macrumors 68020

    Mr. Gates

    Jun 17, 2009
    --Redmond --------- ----------------Washington---
    Don't you people see whats going on here ?

    It's all planned and fake.

    Apple is going to swoop in and buy the company now that this artificial low stock price has been fabricated.

    It's pretty obvious.

    (And extremely unethical I might add)
  14. nutmac macrumors 601

    Mar 30, 2004
    My guess is that Apple initially planned on using sapphire window glass on every Apple Watch models. But due to poor yield and higher than anticipated cost, decided to use it only on higher priced models.
  15. Andrei90 macrumors 6502

    Dec 28, 2011

    And they kept the $100 premium price that was originally intended for an iPhone 6 with sapphire.
  16. Deelron macrumors regular

    Jan 30, 2009
    I wouldn't trust a $40 bill.
  17. Windlasher macrumors 6502

    Jan 11, 2011
    I know - It's like blah, blah, blah. If Apple needs them they can dig enough change from between the couch cushions at Apple HQ to dig them out, or buy all the assets.

    That guy is just some Apple hating jerk blowing his horn.
  18. Rawcus macrumors newbie

    Oct 7, 2014
    I would buy this stock

    Wouldn't the stock price go really low and all their debts be forgiven?

    I would also think that maybe the government will help in some way by giving loans or capital to GT Advanced to keep producing this new type of crystal. I mean this stuff is on apache helicopters i don't know why their would ever be a reduction in demand.

    Essentially apple is able to have huge purchasing power and zero risk with this approach because the govnt will be fronting all the money. So if they don't make enough who cares, anything else goes wrong who cares. If this new method doesn't work, or costs more than the old method... you get the idea.

    Apple will also somehow get the half billion back real quick.


    They can also use all that money to purchase more from other vendors. Isn't that what hedging is?
  19. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002
    Cool. Change just a couple of words and it's almost like you wrote it yourself.
  20. HiRez macrumors 603


    Jan 6, 2004
    Western US
    Why doesn't Apple just buy these guys with pocket change and be done with it? If they end up not needing it, they just sell it off, but it seems likely they will need it.


    I read your post after I suggested Apple buy them, but I missed the conspiracy angle. That would be smart. :)
  21. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002
    If their production process isn't up to stuff, which certainly appears to be the case, then why in the world would they want the company?
  22. iHEARTcartoons macrumors regular


    Aug 11, 2011
    San Diego
    My guess is GTA bet the farm to become a big player for Apple and it just didn't happen in the timeline they hoped for. That's not to say it's necessarily GTA's fault, as it could be Apple not being ready to purchase Sapphire in bulk for the :apple: Watch.
  23. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002
    More like extremely unlikely. Owning stock in a bankrupt company is like owning a pocket full of smoke, only less valuable.
  24. inscrewtable, Oct 7, 2014
    Last edited: Oct 8, 2014

    inscrewtable macrumors 68000


    Oct 9, 2010
    Cook must be one of the sharpest supply chain operators out there. There is no way that Apple could not have seen this coming. I do not believe that artificial sapphire for the entire display was ever on the cards, it simply is not necessary.
  25. V.K. macrumors 6502a


    Dec 5, 2007
    Toronto, Canada
    oh please. Kuo is known to get a LOT of stuff right pretty far in advance. let's take his predictions from April 09 (full 5 months before the iphone 6 unveiling).
    He nailed both the size and the resolution on both models (AFAIK the only person to predict the resolution correctly all the way up to the last moment), got the NFC part right, got RAM and camera details right. and while he turned out to be wrong about sapphire for 6+ screens, given all the recent news about GT it's quite likely that this was actually Apple's plan originally but it didn't work out because GT could not deliver either on quantity or on quality.

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