GT Advanced jumps; Apple reportedly looking to expand sapphire facility

AppleInsider reports "multiple companies are already posting bids to build out a proposed expansion" of Apple's (AAPL) Mesa, AZ facility, where GT Advanced (GTAT +4.7%) is set to produce huge volumes of sapphire.

Construction for the existing facility (already making sapphire) is expected to be finished by June, at which point production should hit full capacity. Sources state the facility will eventually feature 1,700 sapphire furnaces.

9to5 Mac previously reported GT had taken delivery of 518 furnaces and had ordered another 420. That by itself could be enough to provide cover glass for hundreds of millions of iPhone displays.

Thanks to the Apple deal, GT is forecasting 2014 revenue of $600M-$800M, up from 2013's $299M. Its gross margin is expected to fall to 25%-27% from 31.1%.

From other sites
Comments (13)
  • mjtroll1
    , contributor
    Comments (2839) | Send Message
    if this is true why is GLW not getting trashed
    28 Mar 2014, 11:59 AM Reply Like
  • Prashanth Mannar
    , contributor
    Comments (6) | Send Message
    May be because iPhones aren't the only phones out there?
    28 Mar 2014, 12:30 PM Reply Like
  • Day_Late
    , contributor
    Comment (1) | Send Message
    I don't think the Deal is official yet. That's why Corning is still stable for the moment. Also, need to remember Corning has been around for 100 some years. They have other business as well.
    28 Mar 2014, 01:17 PM Reply Like
  • Yesterdays_news
    , contributor
    Comments (2157) | Send Message
    Nice to see outsourced jobs coming home.
    28 Mar 2014, 12:02 PM Reply Like
  • laguna_b
    , contributor
    Comments (313) | Send Message
    GLW has other plays as does GTAT....which is why it is not a zero sum game.
    28 Mar 2014, 12:20 PM Reply Like
  • hikeleader
    , contributor
    Comments (140) | Send Message
    Looking at recent $AAPL patents it appears the Sapphire will be sandwiched between Gorilla Glass. So Sapphire is supplemental?
    28 Mar 2014, 12:54 PM Reply Like
  • Gumby
    , contributor
    Comments (3651) | Send Message
    Sapphire is probably really earmarked for LEDs . phone screens is just a side business?
    LEDs will get big once costs comes down and will sapphire contribute to lower costs for LEDs?
    I am not clear about who is using sapphire for LED manufacturing .. Is it CREE or the Chinese?
    28 Mar 2014, 02:49 PM Reply Like
  • Value Hound
    , contributor
    Comments (848) | Send Message
    90% of LEDs are utilizing a sapphire substrate.
    29 Mar 2014, 09:53 AM Reply Like
  • a alto
    , contributor
    Comments (363) | Send Message
    Gtat , will go much higher , closer to low 30.00 by years end . If you dig deep on them you'll find there just beginning to hit on all cylinders .
    28 Mar 2014, 07:11 PM Reply Like
  • altaire4
    , contributor
    Comments (117) | Send Message
    I'm forecasting $24 - $25 dollars per share for GTAT by the End of the Year .... The Sapphire glass process in the quantities they are talking about will require careful quality control ! I'm bullish longterm for this stock ! Expect volatility and buying opportunities for GTAT below $17.00 a share !
    28 Mar 2014, 09:33 PM Reply Like
  • bnquail
    , contributor
    Comments (16) | Send Message
    Everyone is assuming that Apple is just going to use sapphire for iPhone screens. That doesn't really make sense. Gorilla glass is much cheaper. I think there is something much bigger in the works. Just sayin'
    28 Mar 2014, 07:55 PM Reply Like
  • Downtown10
    , contributor
    Comments (257) | Send Message
    My prediction for iPhone 6: Gorilla glass on the face, sapphire on the back incorporating some type of solar cells for supplemental recharging the phone. Sapphire used to avoid the need for a case and allow for light to hit the backside.
    30 Mar 2014, 10:48 AM Reply Like
  • laguna_b
    , contributor
    Comments (313) | Send Message
    @Downtown - No, no, no....likely sapphire on the front laminated to gorilla glass (as per Apple patent), back does not need scratch protection. Anyones guess what it will have but solar cells are unlikly...
    30 Mar 2014, 01:09 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs