JPMorgan Securities Ltd does not think the initial launch of the iPhone 6, if Apple Inc introduces it this fall, will have sapphire crystal for its main display in any significant volume.
With the limited disclosure about the iPhone 6 by Apple and amid persistent speculation about the new phone’s cover glass adoption, JPMorgan believes the volume will be about 10 million covers this year in either 4.7-inch or a 5.5-inch models, according to the brokerage’s latest industry report, released on Tuesday.
That volume of sapphire cover adoption represents less than 1 percent of the entire smartphone market, JPMorgan said.
“Sapphire covers will also be restricted to high-end iPhones, possibly the 128GB [gigabyte] ones,” the brokerage said in the report.
However, the report, authored by analysts Narci Chang (張恆), J.J. Park and Jay Kwon, expects the adoption to rise severalfold next year.
“We believe this will mark only the beginning of sapphire smartphone cover adoption,” they wrote.
Speculation has arisen recently that sapphire crystal might become an alternative to Corning Inc’s damage-resistant Gorilla glass as smartphone cover material, and analysts say other brands, including HTC Corp (宏達電), Asustek Computer Inc (華碩) and Xiaomi Corp (小米), have shown interest in sapphire covers.
However, US-based Corning has responded by saying that sapphire covers for high-end watches are two or three times thicker than Gorilla glass, and that laboratory strength tests have shown sapphire breaks more easily than Gorilla glass.
JPMorgan said sapphire’s cost is also an issue in view of the low yield rates sapphire manufacturers are facing.
“Due to various challenges related to the new cover material, we believe the production output for sapphire covers will be low,” JPMorgan analysts said. “Sapphire ingot yield rates could be as low as below 50 percent for this size, and finished sapphire smartphone covers may cost as much as US$40 to US$45 versus below US$10 for finished Gorilla glass.”
Based on the brokerage’s recent checks with the sapphire supply chain — including GT Advanced Technologies Inc, headquartered in the US, South Korea’s Sapphire Technology Co (STC) and Procrystal Technology Co (佳晶) of Taiwan, JPMorgan said Apple’s iWatches may not all be equipped with sapphire covers.
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Nvidia Corp yesterday announced that CEO Jensen Huang (黃仁勳) would attend an employee meeting in Taipei tomorrow to celebrate the launch of the company’s Taiwan headquarters project. Huang would attend a gathering at the site of Nvidia’s planned headquarters in Beitou Shilin Technology Park (北投士林科技園區), the company said in a statement. After arriving in Taiwan on Saturday last week, Huang told reporters that he plans to meet with Quanta Computer Inc (廣達) chairman Barry Lam (林百里) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman C.C. Wei (魏哲家), and would attend the groundbreaking ceremony for Nvidia’s Taiwan headquarters tomorrow. Nvidia has not yet applied
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
RSS