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.
PUNCTURE-PROOF: Air Fom tires are made of material used in sports shoe soles and offer a comfortable ride, although people are still skeptical about solid tires Getting a flat tire is a nightmare for cyclists, sending home early any rider who had ventured outdoors without a repair kit or spare inner tubes. Although punctured tires have long been a pain point for cyclists, the problem has never been effectively resolved, despite the bicycle industry going back centuries. A few products have been developed to help reduce the likelihood of flat tires: puncture-resistant tires, which are thicker than usual tires or come with a protective layer; anti-puncture tapes, which are placed between the tire and inner tube to offer extra protection; and tubeless systems that use sealant to close
Tesla Inc temporarily halted some production at its auto assembly plant in California because of problems with its supply chain, but work has begun to resume, CEO Elon Musk told employees in an e-mail on Thursday. “We are experiencing some parts supply issues, so took the opportunity to bring Fremont production down for a few days to do equipment upgrades and maintenance,” Musk said in an all-staff message seen by Bloomberg. The factory was “back up and running as of yesterday,” and would rapidly ramp up to full production of Model 3 and Model Y cars “over the next several days,”
LONG-TERM PLAN: The company expects growth in revenue from its automotive business this year and that it would contribute meaningfully to sales from 2023 Hon Hai Precision Industry Co’s (鴻海精密) new electric vehicle (EV) platform is expected to help launch vehicles later this year, chairman Young Liu (劉揚偉) said on Saturday, signifying major progress in the electronics giant’s push into the automotive industry. Two light vehicles designed using the company’s MIH Open Platform would be unveiled in the fourth quarter, Liu told reporters at the company’s headquarters in New Taipei City’s Tucheng District (土城). Hon Hai might at the same time also help launch an electric bus, he said. Hon Hai has been seeking to expand its automotive capabilities at a time when technology companies including
The production value of Taiwan’s semiconductor industry grew 20.9 percent year-on-year to NT$3.22 trillion (US$113.6 billion) last year, and it is expected to build on that performance this year, the Industrial Technology Research Institute’s (工研院) Industry, Science and Technology International Strategy Center said yesterday. The global semiconductor market grew 6.8 percent to US$440.4 billion last year, boosted by robust demand from the digital transformation and growing stay-at-home economy seen during the COVID-19 pandemic, the center said. That strength is likely to carry over to this year, leading to an 8.6 percent increase in domestic output to a new record NT$3.49 trillion,
RSS