Why is The Agreement between Apple and GT Advanced Technologies so Important?

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Apple is devoting its entire new facility in Mesa, Arizona, to the production of the sapphire material by GT Advanced Technologies. GT’s current sapphire production is about 11 percents of the company’s whole business. After signing the multiyear agreement with Apple, this segment of GT’s business will grow drastically.

According to Brian White, analyst with Cantor Firzgerald, GT’s revenues used to be about $28.9 million, but the company is expecting to make up to $800 million in 2014. About 80 percent of the future sales will be from the company’s sapphire business.

GT announced that it plans to make some big changes in its business model, suggesting that its entire future business will evolve around the sapphire production. Although the company currently produces sapphire for other clients, it is obvious that Apple will become its main revenue source.

But, the deal between GT and Apple seems to be a big deal for Apple too. Sapphire material is currently used for the buttons for the fingerprint-recognition and for camera lenses. According to one rumor, Apple is planning to use sapphire to replace Gorilla Glass by Corning for its future touchscreens. It is also possible that sapphire material will play an important role in the long-awaited iWatch. Or Apple might come up with some completely new gadget.

Source: All things SD

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