With GT Advanced Technologies asking permission to close down its Arizona factory after less than a year, it’s a fair question to ask where exactly Apple plans to get the sapphire displays for its forthcoming Apple Watch.
Earlier this week, KGI analyst Ming-Chi Kuo said that the bankruptcy filing wouldn’t affect Apple’s forthcoming wearables debut. According to a new report from Digitimes, the reason for this is that Apple has a backup plan in the form of two other sapphire cover suppliers besides GT Advanced: the South Korea-based Hansol Technics and China-based Harbin Aurora Optoelectronics Technology.
Hansol is an established business founded in 1995, which changed its name to Hansol Technics from Hansol LCD in December 2010. Alongside LED sapphire materials including ingot and wafer products, it also creates display and power modules for electronics equipment.
Harbin Aurora, meanwhile, advertises its main business as providing sapphire crystal materials R&D, production and sales services. The company offers products such as sapphire crystal rod and sapphire laser window.
Although Apple previously planned to do much of its sapphire production in the U.S., this change to other suppliers would not necessarily be as big a transition as it sounds. While the sapphire slabs were going to be grown in Arizona, the plan was always that they would be shipped to China, where they could be sliced and polished by Apple subcontractors.
The Digitimes report additionally affirms what many have suspected: that GT Advanced ran into problems based on the fact that its yield rates were not high enough to meet Apple’s satisfaction.
Citing its usual supply chain sources, Digitimes claims this yield rate was a dismal 40%, which was reportedly the major reason (instead of price) why Apple gave up on using sapphire covers for its iPhone 6 and 6 Plus.
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
9 responses to “The sapphire’s safe: Other suppliers are lined up for Apple Watch”
another win for China.. we will for be dependent on China. GT folding has shown us that, Greed is more important.
Apple invested in GT. GT had their chance and blew it. So “Plan B” it is. Not greed but business. Either way it is shitty for GT and The USofA.
Maybe not that shitty. There is talk thatApple might have grounds to claim ownership of the plant in Arizona since they loaned the money to build it and none of that to money has been repaid. So they could keep that plant open, all those folks in jobs etc.
Wouldn’t likely be enough for all needs but it would keep some of it here in the US
you must be an apple genius…poor you, you think you know it all. Apple is not good, this is the beginning of the end.
GT Advanced was only producing 40% yield rates which is abysmal. How is Apple being “greedy” by not going with GT Advanced and their terrible sapphire outputs?
Not apple being greedy but the corrupt CEO of GT
another genius know it all.
I read that GTAT was to supply sapphire crystals to Apple for other products other than the AppleWatch, which is why they needed so much mfg capabilities. They might be able to still provide crystals to Apple for the watch, since it’s the two higher priced models which won’t sell as many units at the entry level model. Guess on my part.
Ah so that’s why Apple’s products are made in China. Americans can’t make them. Perhaps the haters will notice – or not.