Apple Supplier Gets Vote of Confidence for Sapphire Glass
February 18, 2014 by Paul Ausick
Apple has already agreed to provide $578 million in financing for a facility to be built in Arizona by Apple. GT will own and operate the required furnaces and related equipment to produce sapphire glass for Apple. A report earlier this month said that GT had already taken delivery of 518 furnace systems at the new plant. That’s enough equipment to make up to 116 million 5-inch iPhone displays.
There was also a report that Apple would use the sapphire glass only in its rumored iWatch. That report knocked GT’s share price down 5%.
Sapphire glass is more expensive than the Gorilla Glass Apple uses in its current smartphones. Gorilla Glass is made by Corning Inc. (NYSE: GLW) and the conflicting reports have pushed Corning’s share price around, to a new 52-week high of $19.20 last Friday after sinking to around $17 earlier in February.
When GT and Apple announced the new plant last November, demand for sapphire glass was expected to rise by 50% by 2016, and GT expected the contract with Apple to have a positive impact on earnings starting this year. GT, long a supplier to the crystalline solar makers, has suffered a sharp downturn in its business since the price of solar modules collapsed.
GT’s shares have posted a new 52-week high of $12.72 on Tuesday morning. The 52-week low is $2.61 and the stock posted an all-time high above $16 in July of 2011.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.