GT Advanced jumps; Apple reportedly looking to expand sapphire facility

|About: Apple Inc. (AAPL)|By:, SA News Editor

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%.