Apple bets on synthetic sapphire to offer tougher screen on iPhone

Apple created the pattern of development of smartphones when covered his first touch screen model with glass and not plastic. Now, she is betting $ 700 million that the Sapphire, a material harder and expensive, can replace the glass and better protect their future machines. The first screen of Sapphire next iPhone, which will be higher, and of a planned smart clock should go into production this month at the factory of Mesa, Arizona, that Apple has built with the GT Advanced Technologies Inc. In its full capacity, the unit will produce twice as much current joint production Sapphire of approximately 100 manufacturers around the world, says Eric Virey, an analyst at French research firm Yole Développement. "Nobody never invested so much money in Sapphire," says Virey. The GT and Apple are producing synthetic sapphire, designed to replicate the properties of one of the toughest minerals on Earth.
Sapphire does not break or scratch as easily as glass. She withstands high temperatures and chemical corrosion. Produce the synthetic sapphire has a high cost, then the material has been little used in aircraft Windows protection against extreme conditions or to cover resistant to scratches in expensive watches. Apple already uses Sapphire to protect the lenses of the cameras of the iPhone and the fingerprint reader.
But a broader use of the material can reduce a big headache: the damaged screens of phones. The SquareTrade, which sells securities for damaged screens, estimates that 11% of owners of iPhones have devices with cracked or broken screens. Virey Analyst estimates that a Sapphire screen can cost $ 16 to be produced, compared with the $ 3 glass of Gorilla Glass, of Corning Inc., currently used on the iPhone. Apple and the GT had no comment. Apple is considering the use of Sapphire screens in more expensive models of the two iPhones with larger screen that plans to launch sometime this year, if she get enough material, say people familiar with matter.
Some analysts expect Apple covers more by appliances for new models earlier, depending on the increase of cost of components. If the use of Sapphire lead to a reduction in broken screens, Apple can save money on costs with guarantees. If Apple does not raise prices, the higher cost of production could reduce the profit margins of the iPhone, says Matt Margolis, PTT Research Analyst and investor of GT, he says that Apple may be willing to absorb the cost for their products stand out in the fight with rival devices. Apple has invested heavily in components to make their products stand out. She designed its own 64-bit processor for mobile devices, helping the company to pull away from competitors.
The Californian company bought the AuthenTec Inc., a maker of fingerprint recognition technology, in 2012 and, last year, included a digital reader on iPhone 5S. For the production of Sapphire, Apple bought Arizona factory of 130,000 square metres of a producer of solar panels last year, for $ 113 million, and rented to the GT, a leader in the manufacture of kilns used to produce Sapphire. In November, Apple agreed to prepay $ 578 million to GT to equip the factory with State-of-the-art ovens.
The GT operates the unit to produce exclusively Sapphire for Apple. The CEO of GT, Tom Gutierrez, told analysts last week that the Arizona unit is almost complete and starting the transition to high-volume production. He said that the plant would reach full operational efficiencies not until the beginning of next year. The Sapphire is resistant to scratches, but it is unclear if the material will be a better protector against broken screens, because the strength of Sapphire depends on its thickness and cut.
Sapphire is also more dense that glass, which will increase the weight of the phone. The Corning reported your Gorilla Glass has superior performance to other materials, including Sapphire, in tests in which screens were cut down from different heights. She also stated that the Gorilla Glass reflects less light than some small Sapphire smartphone makers have already introduced machines with screens of Sapphire. The British Vertu Corp., which produces luxury phones that cost more than $ 10,000, has two models with screens of Sapphire. The Japanese Kyocera Corp. launched the Brigadier, a phone that the company claims to be virtually scratch-proof. Natural sapphires are a variety of corundum gems, a crystalline form of aluminium oxide. Impurities such as copper or magnesium alter its color, creating the gems used in jewelry manufacturing.
Without such impurities, Sapphire is transparent. Mass production of Sapphire is complex. Sapphire crystals are created in giant ovens. After the ingredients are crystallized, the result is a giant drum called "boule", which is worked in different ways. The Apple factory ovens in Arizona are able to produce more than 200 kilogrammes boules. To manufacture more than 50 boules% larger than those produced today, Apple and the GT intend to bring down the price of Sapphire for near the price of glass. "Before the Apple investment, I'd say that Sapphire is a great material with a lot of potential, but that still would take some years to become a reality of the market," said Vinita Jakhanwal, Director of emerging technologies for mobile screens in IHS Technology research firm. "But Apple has invested a significant amount, so it's fair to say that the company probably hopes a return of your investment quickly." (Collaborated Lorraine Luk, Eva Dou and Mayumi Negishi.)