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Apple roundup: Sapphire, GPU licensing, Brazilian store, Wal-Mart

  • A week after uncovering documents suggesting Apple (AAPL) is set to begin sapphire production at its Mesa, AZ facility in February, 9to5 Mac reports manufacturing partner GT Advanced (GTAT) has received delivery of 518 sapphire furnace/chamber systems.
  • Analyst Matt Margolis estimates that's enough capacity to produce sapphire cover glass for 103M-116M 5" iPhone displays per year. Another 420 systems are said to be on order (good for 84M-94M additional displays). GT Advanced shares are up 4.7% AH.
  • Apple has extended its multi-year licensing deal with leading GPU core developer Imagination (IGNMF), whose PowerVR cores are found within Apple's A-series processors.
  • The deal is a blow to ARM (ARMH), which has been hoping Apple would adopt its Mali GPU cores. 400M Mali GPUs were shipped in 2013, up from 150M in 2012.
  • Apple plans to open its first Brazilian store on Feb. 15 in Rio de Janeiro. The company's sales to Latin America's largest market have been limited by steep taxes and tariffs.
  • Wal-Mart is once more discounting Apple hardware: The retail giant is selling the 16GB Wi-Fi-only iPad 2 for $299 ($100 below its regular price).
Comments (6)
  • Gregory Block
    , contributor
    Comments (111) | Send Message
     
    I wonder who supplied the furnaces... My magnifying glass isn't working to well on the photo in the article...
    6 Feb, 07:50 PM Reply Like
  • dramorgan
    , contributor
    Comments (54) | Send Message
     
    TPCS makes the furnaces that were delivered to GTAT and is a little known penny stock.
    Could be the best play out of the three stocks.
    6 Feb, 07:51 PM Reply Like
  • Aaron.Rhodes
    , contributor
    Comments (242) | Send Message
     
    We're agreed about TPCS being a good play on this, though I believe they only make components for these furnaces. I hope there will be good news on next Wednesday's Techprecision QR. Last quarter's call was rough. Would buy a ton at today's price if I had any liquid.
    6 Feb, 09:15 PM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1245) | Send Message
     
    What would revenue be on tpcs?
    6 Feb, 09:17 PM Reply Like
  • Aaron.Rhodes
    , contributor
    Comments (242) | Send Message
     
    If I remember correctly, TPCS makes in the 30's% gross profit on these. for a 8.1 million dollar contract. Annual revenue for TPCS is was 20-30 million last year. Sorry not too be exact, but you can look all this up on their SEC filings. I've hyper linked the press release on their deal with GTAT for the chambers:
    http://bit.ly/1b4PlXH
    6 Feb, 09:30 PM Reply Like
  • Stephen J Melnykevich
    , contributor
    Comments (1245) | Send Message
     
    Thanks for the link. I'll look into this to see the possible revenue growth w AAPL
    6 Feb, 09:37 PM Reply Like
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