Boston, MA 08/20/2014 (wallstreetpr) – GT Advanced Technologies Inc. (NASDAQ:GTAT)‘s stock was up in Tuesday trading session after reports emerged that the much awaited Apple Inc. (NASDAQ:AAPL)’s iPhone 6 might go into large scale production this month. The news caused the company’s stock to surge in the market by 0.93% consequently closing the day at a high of $18.40. Sources also claim that Apple is set to use Saphire glass to make its new iPhone, a product normally supplied by GTAT.
Possible Saphire Orders
GT Advanced Technologies Inc. (NASDAQ:GTAT) may be primed for increased orders for Saphire glass should Apple go into mass production for iPhone 6. Saphire is normally used in camera lenses as well as in the protective disk that normally serves as the Touch ID for the home button. The only uncertainty at the moment is the fact that Apple has not yet officially confirmed whether it is going to use Saphire in iPhones.
Speculations have been ripe in the industry that Apple will use Saphire glass in its next flagship products especially after entering into an agreement with GT Advanced Technologies Inc. (NASDAQ:GTAT) where it bought the formers 1.4 square foot facility in 2013 consequently leasing it back. Apple Inc. (NASDAQ:AAPL) is reported to have agreed to pre-pay $578 million to GT Advanced technology. The amount was used to fit the facility with cutting edge Saphire production furnaces.
Apple’s Deal
Part of the deal involves Apple being reimbursed the invested amount over a period of five years beginning 2015. The initial funding was necessary if GT Advanced Technologies Inc. (NASDAQ:GTAT) was to be in a position to guarantee mass production of Saphire glass able to meet the needs of the upcoming Apple devices. There has already been suggestion that Saphire glass might also find its way into iWatch consequently raising the demand for Saphire glass.
Saphire Glass looks set to be a possible replacement to the ever common Gorilla Glass that Apple Inc. (NASDAQ:AAPL) has used in its devices over the past years. Saphire is a bit expensive meaning the price of iPhone 6 might go up if the same is incorporated’ used.
