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.
US PROBE: The Information reported that the US Department of Commerce is investigating whether the firm made advanced chips for China’s Huawei Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract maker of advanced chips, yesterday said it is a law-abiding company, and is committed to complying with all applicable laws and regulations including export controls. The Hsinchu-based chip giant issued the statement after US news Web site The Information ran a story saying that the US Department of Commerce has launched a probe into TSMC over whether it breached export rules by making smartphone or artificial intelligence (AI) chips for China’s Huawei Technologies Co (華為). “We maintain a robust and comprehensive export system for monitoring and ensuring compliance,” the statement said. “If we
DEMAND FOR AI CHIPS: Net income in the third quarter surged 31.2% quarter-on-quarter to NT$325.26 billion, the strongest quarterly return in the company’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday raised its revenue forecast to annual growth of 30 percent this year, thanks to strong and sustainable demand for artificial intelligence (AI) processors for servers. It was the second upward adjustment from 25 percent year-on-year growth estimated three months ago, despite recent concerns about whether the AI boom could be another technology bubble. “The demand is real. It’s real. And I believe it is just the beginning of this demand. Alright, so one of my key customers said the demand right now is ‘insane,’” TSMC chairman and chief executive C.C.
Starbucks Corp might have the more recognizable name, but 7-Eleven’s City Cafe remains the king of Taiwan’s fresh coffee market, helped by the convenience store chain’s extensive market presence and product diversification. President Chain Store Corp (PCSC, 統一超商), which runs both the 7-Eleven and Starbucks store chains in Taiwan, established the City Cafe brand in 2004. The brand took off when actress Gwei Lun-mei (桂綸鎂) became its spokesperson in 2007. City Cafe’s sales exceeded NT$10 billion (US$311.69 million) for the first time in 2015, surpassing the revenue of Starbucks Taiwan, and rose to more than NT$17 billion last year, exceeding the NT$14.98
COUNTRY-BASED: Setting ceilings on sales of the technology would tighten limits that originally targeted China’s ambitions in artificial intelligence amid security risks US officials have discussed capping sales of advanced artificial intelligence (AI) chips from Nvidia Corp and other American companies on a country-specific basis, people familiar with the matter said, a move that would limit some nations’ AI capabilities. The new approach would set a ceiling on export licenses for some countries in the interest of national security, according to the people, who described the private discussions on condition of anonymity. Officials in the administration of US President Joe Biden focused on Persian Gulf countries that have a growing appetite for AI data centers and the deep pockets to fund them, the people