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

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Original poster
Apr 12, 2001
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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.

Bankruptcy has no impact on Apple Watch. As the Apple Watch sapphire cover lens uses an ingot of less than 6-inches, and as drop-test requirements aren't so stringent as those of iPhone, general ingot manufacturing processes such as KY suffice for Apple Watch. This is why there are abundant sapphire ingot suppliers to choose from for Apple Watch. According to our survey, aside from GTAT, other Apple Watch sapphire ingot suppliers are Hansol (KR) and Harbin Aurora Optoelectronics (CN). We therefore don't think GTAT's bankruptcy will affect sapphire ingot supply to Apple Watch.
... 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
 

Alonso Quijano

macrumors 6502
Jul 17, 2013
288
175
Apple would save them from bankruptcy if they really depended on them for :apple: Watch production
 
Comment

Technarchy

macrumors 604
May 21, 2012
6,753
4,926
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 Pets.com.
 
Comment

rdlink

macrumors 68040
Nov 10, 2007
3,226
2,434
Out of the Reach of the FBI
Geez,

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.
 
Comment

Keirasplace

macrumors 601
Aug 6, 2014
4,059
1,278
Montreal
Apple Watch = Colossal Failure.

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

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[url=http://cdn.macrumors.com/im/macrumorsthreadlogodarkd.png]Image[/url]


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

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.
 
Comment

farewelwilliams

macrumors 68040
Jun 18, 2014
3,657
14,793
Geez,

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.

drama is that people lost a crap load of money now the stock is ~$1
 
Comment

linkgx1

macrumors 68000
Oct 12, 2011
1,652
250
Now mysteriously the rumors of the sapphiPhone are going ti disappear. And were's dat dere iPad Pro?
 
Comment

nutmac

macrumors 601
Mar 30, 2004
4,806
3,385
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.
 
Comment

Andrei90

macrumors 6502
Dec 28, 2011
435
153
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.


And they kept the $100 premium price that was originally intended for an iPhone 6 with sapphire.
 
Comment

Windlasher

macrumors 6502
Jan 11, 2011
483
111
minneapolis
Apple would save them from bankruptcy if they really depended on them for :apple: Watch production

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.
 
Comment

Rawcus

macrumors newbie
Oct 7, 2014
1
0
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.

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They can also use all that money to purchase more from other vendors. Isn't that what hedging is?
 
Comment

IJ Reilly

macrumors P6
Jul 16, 2002
17,889
1,478
Palookaville
Bankruptcy has no impact on Apple Watch. As the Apple Watch sapphire cover lens uses an ingot of less than 6-inches, and as drop-test requirements aren't so stringent as those of iPhone.

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.

Cool. Change just a couple of words and it's almost like you wrote it yourself.
 
Comment

HiRez

macrumors 603
Jan 6, 2004
5,946
1,926
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.

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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)

I read your post after I suggested Apple buy them, but I missed the conspiracy angle. That would be smart. :)
 
Comment

IJ Reilly

macrumors P6
Jul 16, 2002
17,889
1,478
Palookaville
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.

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?
 
Comment

iHEARTcartoons

macrumors regular
Aug 11, 2011
176
0
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.
 
Comment

IJ Reilly

macrumors P6
Jul 16, 2002
17,889
1,478
Palookaville
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)

More like extremely unlikely. Owning stock in a bankrupt company is like owning a pocket full of smoke, only less valuable.
 
Comment

inscrewtable

macrumors 68000
Oct 9, 2010
1,627
390
Apple would save them from bankruptcy if they really depended on them for :apple: Watch production

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.
 
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V.K.

macrumors 6502a
Dec 5, 2007
605
271
Toronto, Canada
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.

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).
https://www.macrumors.com/2014/04/09/kgi-iphone6-predictions/
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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