GT Advanced Technologies (GTAT) looks set to go into Apple's (AAPL) approaching iphone. The rumors on the web demonstrate that Apple will be incorporating sapphire into the iphone 6, and this is extraordinary news for GT investors as the company appears to be in concurrence with the Cupertino-based company to supply sapphire. As a result, it may be a decent thought to investigate GT Advanced Technologies and check the moves that it is making to benefit from increasing sapphire selection.
Sapphire's prospects look brilliant
With sapphire interest rising at a faster pace than supply, prices are liable to increase. To date, GT has gotten around $440 million of the $578 million of aggregate prepayments that are to be gotten from Apple. The company expects absolute prepayments will be useful enough for sapphire supplies generation at the Arizona plant, which is liable to help in excess of 80% of the revenue this year.
Advanced Sapphire Furnace customers are running at high use rates because of interest, and the company has sufficient ability to take care of this surge in demand. The new Asf165 engineering increases the bunch size by in excess of 40% and reduces creation cost. This new ASF stage will be accessible to new customers as well which are going for the LED and the industrial markets. The Asf165 design is relied upon to increase revenue in the second quarter.
The company has also made progress in the polysilicon market with considerable increase in supply and valuing. Spot poly prices surpassed $20 per kilogram shockingly since 2012 in the first quarter. It is normal that the prices will keep on riing and will touch the characteristic of $24 per kilogram before this year's over. GT is really certain of its strong position in polysilicon innovation.
The cutting edge Sdr1k reactor, which targets a significant change, yield and lower vitality consumption than the SDR 600, is currently accessible economically. Also, the company is stretching its Merrimack operation by including sapphire creation limit in Merrimack to so as to proceed with its R&d initiatives and give pilot generation ability to the LED business.
Apple is a huge catalyst
The tie-up of GT with Apple to supply sapphire displays the developing interest in ASF, Polysilicon, Hicz and DSS solutions that have been helping the company's development.
In my previous article on GT Advanced Technologies, I highlighted Apple's patent filings which showed that the company has figured out how to beat the problems of a sapphire display. I stated,
"The two real problems with using sapphire in smartphones are high cost and oil liking. Then again, on the off chance that you examine Apple's late patent filings, you will be persuaded that the Cupertino titan has solved these problems. Apple as of late protected a procedure which involves fusing a dainty sapphire cover sheet with spread glass. This means that Apple won't need to produce immaculate sapphire displays for the iphone 6, which will at last cut down the cost of sapphire displays.
Be that as it may, Apple isn't carried out cutting down the sapphire assembling cost. The company as of late recorded two more patents called "continuous sapphire development" and "hotness exchangers in sapphire processing" patents. These new techniques offer a more capable and cost-viable method for creating sapphire. Apple is likely using these inventions in their new sapphire plant in Arizona. The Arizona sapphire plant will now misuse and amass geothermal vitality which will be used to operate the furnaces. Thus, the plant will now have the capacity to create bigger amounts of sapphire because of the increased high temperature productivity. Moreover, this method will also lessen the measure of waste delivered.
Proceeding onward, Apple has also dealt with the oil liking issue. Last month, Apple recorded an "oleophobic covering on sapphire" patent. As the name suggests, oleophobic means oil-repellent, and this system is relied upon to help the company produce smudge-verification sapphire screens."
Apple's late Liquidmetal Patent is again a strong marker of the way that the company will use sapphire in the iphone 6. Apple is wanting to use Liquidmetal and sapphire to make the screen of the iphone 6, which will make its glass shatter-verification. Also, last month, Apple was allowed yet an alternate patent called "Methods and systems for indispensably trapping a glass insert in a metal bezel." This means that Apple can now flawlessly enclose sapphire inside of Liquidmetal bezels. Different patent filings plainly show that Apple wants to use sapphire in its approaching devices and this should profit GT Advanced Technologies in the long run.
The development prospects of GT Advanced Technologies look truly strong. Truth be told, through the following five years, its earnings are relied upon to develop at a CAGR of 48%, which means that it is a solid development stock. Considering the company's tie up with Apple and the positive trends in the sapphire business, GT Advanced Technologies looks set to scale new heights.