Apple starts shipping sapphire ingots to manufacturers in the Far East

May 1, 2014 07:24 GMT  ·  By

UBS Research has published its Q1 preview on GT Advanced Technologies, the firm tapped by Apple to produce copious amounts of sapphire for an unannounced product. Their findings show that thousands of sapphire ingots are now being shipped to China on a regular basis, as iPhone 6 has reportedly entered production.

The factory operated by GT Advanced in Mesa, Arizona started producing sapphire in bulk last month. Checks made by UBS Research reveal that, “for the first time GT shipped some small quantities of sapphire made in its Arizona fab to one of Apple’s partners in China who is in charge of making sapphire covers.”

As many as 2,200kg (4,850 pounds) of the exotic material were shipped to the Far East for trial screen production.

“Our checks find the amount of ingots it sold into China last month was only about 2,200kg which would be in line with our estimate of about 100 sapphire furnaces turned on and running (our checks find 100 furnaces were targeted for installation in 4Q13).”

Recent leaks, including photos of the tools used to machine aluminum cases, indicate that iPhone 6 production is underway.

Analyst Matt Margolis calculates that “approximately 100,000 to 115,000 sapphire screens could be produced from 2,200 kg of sapphire ingots.” One sapphire screen costs as much as $8.50 (€6.13) to $10 (€7.21), which is considerably more expensive than Gorilla Glass.

Earlier this year there were some concerns that Apple would have difficulty churning out enough sapphire to meet demand for the all-new iPhone 6, but according to UBS Research, GT is on track to deliver the amounts demanded by the Cupertino giant.

“We believe GT is still on schedule in Arizona, where we estimate GT was to install another 400-500 sapphire furnaces in 1Q14 and 900-1,000 in 2Q14.”

Apple has been systematically paying GT Advanced for its work and issued its third such payment just last week, according to the UBS report.

“GT confirmed last week that it received a 3rd prepayment from Apple recently (we estimate the 4th and last prepayment will be made in May) which also gives us confidence that its Arizona sapphire factory for Apple is tracking on schedule.”

iPhone 6 is expected to boast a considerably larger display, which Apple will reinforce with sapphire to reduce the possibility of it breaking. Sapphire could also be used in the elusive iWatch, a rumored wearable computer expected to be announced by the company in the second half of 2014.