Near-unscratchable screens that are expected to be one of the biggest selling points of the iPhone 6 when Apple Inc unveils the latest model in Sept. are to go into large-scale production this month.
To create industrial quantities of man-made sapphire, the material already used to cover the fingerprint-sensing home button and camera lens on its phones, Apple has a US$578m deal with manufacturer GT Advanced Technologies Inc, which has built a plant powered by renewable energy in Mesa, Arizona.
The iPhone 6 is set to make its first public appearance on Sept. 9. Until now Apple has relied on toughened glass which can be easily shattered and marked. However, screens already demonstrated by GT can withstand scratches from concrete. Its thin sapphire layers are flexible, potentially improving resistance to knocks and falls.
Apple is said to be preparing two new iPhone models, both of which are to have larger screens than their predecessors. The biggest is to measure 5.5 inches corner to corner, while the smaller iPhone is to have a 4.7-inch screen.
The Wall Street Journal reported that Apple has ordered an initial batch of between 70 million and 80 million handsets, its biggest first run production, to be sent out from factory gates in time for Christmas and the New Year.
GT chief executive Thomas Gutierrez told investors on a call this month: “The build-out of our Arizona facility, which has involved taking a 1.4 million square foot [130,000 m2] facility from a shell to a functional structure and the installation of over 1 million square feet of sapphire growth and fabrication equipment, is nearly complete and we are commencing the transition to volume production.”
Meanwhile, Taiwan’s Hon Hai Precision Industry Co (鴻海精密) is expected to record significant sequential revenue growth in the second half of the year, as it ramps up production of the iPhone 6, head of Taiwan research at Morgan Stanley Jasmine Lu (呂智穎) said.
“Even if the iPhone is delayed, as the market is speculating, we think the strong production cycle will last into the first half of 2015, given the lack of robust competition,” Lu wrote in a note to clients, dated Thursday last week.
Lu forecast a 5 percent increase in Hon Hai’s revenue for this quarter and a 55 percent jump for next quarter, with earnings per share of NT$2.41 and NT$3.75, respectively.
Additional reporting by CNA
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