Rising Sapphire Display Cost May Limit Production of 5.5-Inch iPhone 6

[HobeSoundDarryl]

"Supply chain sources" is probably the biggest idiot to come this way in a while. The whole point of Apple mass manufacturing their own sapphire screens is that they can make it cheaper than anyone else. It's the whole strategy. It gives them an edge nobody else can match unless they're willing to make the same manufacturing investment. This is a common strategy for Apple, to dominate a production segment like they did back in the day when they would buy-out all the flash ram supply.

Supply chain sources are probably the BEST source of rumors that will turn out to be reality. Apple isn't going to let any real secrets out. Apple insiders have to be careful. Supply chain players can see that orders for a 4.7" phone touchscreen for "unknown company" has spiked up and can guess who "unknown company" might be. If the rumor is tied to supply chain production, somebody is ordering- and paying for- a ton of this or that and if the order sizes are at Apple scales, it's not hard to identify them as somebody. It makes little sense to order a ton of something to throw off the rumor mill (that would be just a big load of waste) so a supply chain rumor backed by supply chain production pretty much predicts supply chain yields of real products.

And owning the manufacturing facility doesn't make costs plunge to near nothing. The best one can do by owning the manufacturing facility is to build whatever at cost. If there was massive savings in owning the manufacturing facility, Apple would have facilities it owns making everything it sells. Instead, much of everything it sells is outsourced for other companies to make.

My suspicions are that they chose to buy this particular facility for some other reason… and maybe some other product altogether. Or maybe Corning was increasingly cornering the market and looking to exploit that advantage so Apple decided to create an alternative (though Sapphire doesn't seem like it could ever compete with sand (glass) on price).

Maybe one of the so-called "new categories" "to launch in 2014" needed sapphire vs. gorilla and no partner could give it to them as they wanted it or there was some strategic disadvantage in trying to outsource this particular part (though the imagined advantage of what a clear sheet of something cut in any shape could be is difficult to imagine)? Maybe Apple is going to try to patent a shape that won't work well duplicated in a material other than Sapphire?

 

[topmounter]

people need to understand that the cost of iphone is relatively low compared to the cost of monthly bills.

on a 2 year contract, you'll spend around $2000 to $3000.

it's irelevant iphone 6 costs $100 or $200 more on contractual price.

even if the iphone costs $500 on 2 year old contract, people will still buy it.

Not me. Now that AT&T has out-of-contract pricing and my monthly bill is solidly under $150 (2 phones and 1 tablet) , I'm done buying subsidized phones and the unsubsidized price now matters.

 

[rols]

Ridiculous rumor. iPhones won't use sapphire, and there won't be a 5.5" iPhone.

+1, +2 even. The 5.5" phone isn't coming, it's not delayed or being released a few months later (please have we learned nothing about Apple all these years), 4.7", believe that, 5.5", no way in hell this year and probably not next. And the next phone won't have a sapphire front or a liquid metal back either. It will have gorilla glass, it will arrive in late September, it will be recognisably an iPhone and will run iOS8. People will say 'oh is that it' and then buy them by the busload.

 

[AppleScruff1]

Are there large numbers of complaints about Gorilla Glass screens having scratching problems? Funny, in the time I've been on this forum I never hear any complaints of screen scratching, just dropping and breaking.

 

[Serban]

so this mean that the rumour for increase iphone 6 price with 100$ is fake? or not?

 

[Oracle1729]

people need to understand that the cost of iphone is relatively low compared to the cost of monthly bills.

on a 2 year contract, you'll spend around $2000 to $3000.

it's irelevant iphone 6 costs $100 or $200 more on contractual price.

even if the iphone costs $500 on 2 year old contract, people will still buy it.

The people on this forum do not represent the public. A friend of mine recently bought a 4S on contract for "free" because it was $50 cheaper than a 5C. I tried to talk them into spending the $50 but they had zero interest in the differences. Now they're upset that their 4S only has 8 gig, but other than that they really don't care about the missing features.

If a 5S is sub $100 on contract after the 6 comes out at $500 on contract, Apple will have a very hard time convincing people to spring for the 6.

Fwiw, I completely agree with you and I'll pay the extra $$ for the best phone on what really is a $2000 contract...but most people don't see it that way.

 

[akbarali.ch]

I don't think they'll have different models with different glass on it. This is the same reason they bloody bought the whole plant for. So that they can make devices with Sapphire while know one else can unless they cut deep profits.
This way apple can maintain the profit margin and stay ahead, Evil

 

[AppleInLVX]

Are there large numbers of complaints about Gorilla Glass screens having scratching problems? Funny, in the time I've been on this forum I never hear any complaints of screen scratching, just dropping and breaking.

I wonder this myself. I just ran a microfiber cloth over the screen of my 4S to get all the gook off the screen, and when clean, this glass is immaculate. Even at an angle, *looking* for micro scratches or whatever, I can't see anything... certainly nothing that's going to bother me in daily use. And this is on a device that's nearly three years old.

I never thought I did anything particularly obsessive to ensure my screen stays safe, either. No covers... just the Apple bumper. I keep the phone in my jacket pocket most of the time, where the pocket belongs to the phone. My keys/change go in another pocket.

I have no complaints. If this new iPhone doesn't have a sapphire screen, I really won't cry foul on it. I need the upgrade, so it's happening regardless, but all this screen stuff baffles me. Honestly, I'm most looking forward to the faster processor, motion chip and any other new metrics-gathering hardware most of all.

 

[wizard]

even if the iphone costs $500 on 2 year old contract, people will still buy it.

Hardly!

 

[jimbo1mcm]

If Apple buys LG, they can release the Iphone 6 ( re-named LG G3 ) with a 5.5, QHD, micro sd and a 3000maH battery in a minimum bezel form, with wireless charging, on May 27th of this year.

 

[Serban]

so this rumour mean that the rumour for increase iphone 6 price with 100$ is fake? or not?

 

[doelcm82]

That is so sad, yet so true..
Not me though. Im always a model behind. When a new model comes out people for the most part disown the last model like a bad habbit. So I like getting them at that 99 dollar or even free price point

I agree. It's sad that people pass their old iPhones to you. I'm very sorry for you.

 

[wizard]

Apple has purchased 100's of Sapphire furnaces from Advanced GT. This is a done deal and a fixed cost. To get Sapphire you just need to add heat, staff, a building and large quantities of Allumina powder... On which one of these has the price changed?

I guess there could be a problem with manufacturing yield but I think the technology is quite mature.

My understanding is that the technology is rather new. At least from the standpoint of the size of the crystals they intend to grow.

This whole story sounds dodgy to me.

Well yeah it is suspicious. I might suggest crafted disinformation to mask what is really going on. Patently Apple has recently posted some interesting details about what could be Apples possible direction here.

 

[AppleScruff1]

I wonder this myself. I just ran a microfiber cloth over the screen of my 4S to get all the gook off the screen, and when clean, this glass is immaculate. Even at an angle, *looking* for micro scratches or whatever, I can't see anything... certainly nothing that's going to bother me in daily use. And this is on a device that's nearly three years old.

I never thought I did anything particularly obsessive to ensure my screen stays safe, either. No covers... just the Apple bumper. I keep the phone in my jacket pocket most of the time, where the pocket belongs to the phone. My keys/change go in another pocket.

I have no complaints. If this new iPhone doesn't have a sapphire screen, I really won't cry foul on it. I need the upgrade, so it's happening regardless, but all this screen stuff baffles me. Honestly, I'm most looking forward to the faster processor, motion chip and any other new metrics-gathering hardware most of all.

Same for my iPad screen and prior models. I personally haven't heard anyone complain about their smartphone screen being scratched. Broken yes, but not scratched. I don't see why not having a sapphire screen would be considered a negative. At this point, it seems like a solution to a problem that doesn't exist. Now if it was crack resistant or break proof, it would be a different story.

 

[Serban]

there are many phone/smartphones with scratch screens, a lot of them.
I doubt you see so much broken screen when the user can't use it like that

maybe only in services you see more broken screens than scratch

 

[wizard]

?...
No
...

Why no? Have you read any of the patents that Apple just acquired? The possibilities are very interesting and address the problem of making crystals big enough to function as a "glass" on an iPhone.

 

[street.cory]

The next iPhone will have sapphire.

The iPhone 5/5C/5S have sapphire as well.

 

[irnchriz]

Forgive my ignorance, but does this mean a sapphire phone won't shatter if I drop it? That's pretty huge IMO.

No, it breaks just the same. It is far more resilient to scratches though.

 

[AppleScruff1]

there are many phone/smartphones with scratch screens, a lot of them.
I doubt you see so much broken screen when the user can't use it like that

maybe only in services you see more broken screens than scratch

Any links for this? I've been here for over 3 years and I can't recall reading about glass scratching. There are kiosks in ever major mall here in MA that do glass and lcd screen replacements and they seem to do a good business. Personally I know lots of people who have broken their screen. If sapphire would stop this, it would be a big breakthrough. But it appears that is not sapphire's strong point.

 

[krewger]

oh no, another max storage tier of 64gb? Can I have the 128gb model with the sapphire screen? I'll pay for it happily, by the time i have 30 gigs of music, some games, some apps, some photos, nav, it's full. I need more storage and I won't buy a new iPhone unless the storage increases this year. The iPhone 5s is here to stay in my hands until further storage is added.

 

[MyopicPaideia]

It seems to me there is a fundamental flaw in this article.

These latest reports suggest that the sapphire screen costs around 1743 yuan (or $280), which would raise the final cost of the device to about 8000 yuan (or $1285) - at least in China. At the moment, the 16 GB iPhone 5S costs 5288 yuan in China ($850), whereas the beefier 64 GB variant is retailed at the price of 6888 yuan (or $1106)

Is it just me or does it seem like manufacturing cost is being confused with retail price a lot in this paragraph??

How could the BOM of the 5.5" device be $1285 when the current 64GB iPhone retails for $1106?

The entire manufacturing cost for the 5S is estimated at somewhere between US$199-220 (16GB-64GB) So this entire report seems stupidly ridiculous. How could a screen made of sapphire cost more than the entire manufacturing cost of the 5S???

Publishers really need to research this stuff a little but before releasing this sort of bull on their sites, IMHO.

 

[Serban]

Any links for this? I've been here for over 3 years and I can't recall reading about glass scratching. There are kiosks in ever major mall here in MA that do glass and lcd screen replacements and they seem to do a good business. Personally I know lots of people who have broken their screen. If sapphire would stop this, it would be a big breakthrough. But it appears that is not sapphire's strong point.

ok so your people with scratch screen use their phone further?? or get the screen replace or another phone??
you see more scratch screen believe me because a lots of people dont want a replacement just for a little scatch BUT for a broken screen, my god no one wants to use it

 

[The Barron]

50% increase in iPhone price? Not going to happen!

They just won't do it, it's far to much of a jump in component cost for the benefit of what apple would see.

Providing a stronger glass does what for Apple? Are there millions of people never buying an iPhone again because the screen smashed?

It's not a big enough selling point to warrant that sort of price increase.

There is NO WAY Apple is going to jack prices that much unless they really want to see sales drop like rocks from the sky.

 

[cmChimera]

The iPhone 5/5C/5S have sapphire as well.

I hope your failure to pick up on the context of the conversation is a joke. But, yes, I meant sapphire screen.

 

[HobeSoundDarryl]

The 5.5" phone isn't coming, it's not delayed or being released a few months later (please have we learned nothing about Apple all these years), 4.7", believe that, 5.5", no way in hell this year and probably not next.

Everyone should believe whatever they want. However the sentiment in the above cracks me up. Go back to before there was a 4" screen in iPhones and this crowd would sling the very same kind of message about any size other than the only and only "perfect" size of 3.5"

When the rumors built up enough that it looked like Apple would shift, "we" hedged a bit with "wait & see". When it became increasingly likely, "we" started embracing the idea. When Apple rolled it out, "best iPhone ever".

Then, "we" bashed anything above 4" as "abominations", "no way Apple would ever", "need bigger-pocketed pants" and good ol' "99.9% would never want a..." and similar. Now, the rumors are piling up again so we're shifting toward ideas that maybe all of "us" should be in that .1% that might want a phone above 4" and don't think it is an "abomination". Courtesy of the Samsung case, we know that Apple itself believes customers want bigger-screened phones so we have some evidence of Apple itself thinking the screen needs to grow. So we're hedging our opinions further because we know it's coming.

If Apple rolls out only a 4.7", "we" will apparently continue to bash anything bigger because 4.7" will be the third incarnation of the new and perfect sized screen for smart phones. If Apple rolls out only a 5.5", ditto. If Apple rolls out both, "we" will have a thousand threads of "which should I buy" with posts within those threads gushing about whichever one "I" bought is the only and only best size that "you" should want too.

Personally, I'd ONLY be interested in the 5.5" for my own wants. So if there's "no way in hell", I'm not buying an iPhone. On the other hand, if Apple has learned that people want bigger screens- and they have- maybe they've also learned that one size doesn't fit all. And if they want all of the money- and they do- they might then roll out more than one size of screen. It's not like Apple would never roll out 2 models of new iPhones with differing features. They just did that in the last launch.