Ignore This Apple Inc. Rumor

Apple  (NASDAQ: AAPL  ) is widely expected to incorporate sapphire into its devices to an even greater extent in the future. However, a new report from China suggests that sapphire will be prohibitively expensive for even Apple to use. The report, which is admittedly questionable, pegs sapphire display assembly costs at $280. That's up from the current estimated cost of around $40 for Retina display assemblies. Such a major spike in component costs would inevitably end up pushing up retail prices if the report proves accurate -- but the numbers simply don't add up.

Corning has worked hard to show that its Gorilla Glass remains superior, as Corning would stand to lose if Apple shifted to sapphire. GT Advanced Technology has started to ship sapphire in small quantities to Apple from its Arizona facility. GT Advanced has built a factory with such massive capacity that the company could help push down sapphire prices across the board.

In this segment of Tech Teardown, Erin Kennedy discusses sapphire costs with Evan Niu, CFA, our tech and telecom bureau chief.

The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

Read/Post Comments (3) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 07, 2014, at 5:48 AM, tyler91988 wrote:

    AAPL would be foolish to ditch Corning this way. Steve himself said "We couldn't have done it without you" (regarding the iPhone) to Corning's CEO.

    Either way, GTAT is rising on the rumors. GLW should remain a strong bet.

    Long AAPL, GLW, and GTAT.

  • Report this Comment On May 07, 2014, at 7:32 AM, jdmeck wrote:

    And Corning could not have done it without Steve. He is the one who had them pull the concept out of the trash.

  • Report this Comment On May 14, 2014, at 4:59 PM, izeldor wrote:

    There may be a challenge on the patents for Sapphire from a Swiss developer. Such litigations can take years and not change the existing playing field, except possibly to sour the proverbial milk. I am unfamiliar with the process for Gorilla glass but sapphire can be very expensive for a few reasons, including 'loss-yield'. It does not matter how large the production facility is when it comes to costs of spoliation.

    The ultimate winner of this game will probably be the one that devises methods to reduce the power consumption of touch-screens. If the material is scratch and break resistant, even better but ultimately secondary in value to the end consumer. If a breakable glass can run 5-6 days and be significantly cheaper versus an impact resistant one that runs 2-3 days, people will be kicking their 2-3 day 'smart-phone' down the street.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2946192, ~/Articles/ArticleHandler.aspx, 9/1/2015 2:37:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

Today's Market

updated Moments ago Sponsored by:
DOW 16,110.23 -417.80 -2.53%
S&P 500 1,921.61 -50.57 -2.56%
NASD 4,657.96 -118.55 -2.48%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 2:22 PM
AAPL $109.40 Down -3.36 -2.98%
Apple CAPS Rating: ****
GLW $16.71 Down -0.50 -2.91%
Corning CAPS Rating: *****
GTATQ $0.20 Up +0.05 +33.42%
GT Advanced Techno… CAPS Rating: ***