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Weak non-iPad tablet sales reduce demand for Gorilla Glass

post #1 of 67
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Citing weaker-than-expected demand for tablets, Corning has reduced its sales forecast for Gorilla Glass, though disappointing sales are believed to be related to non-iPad tablets, not Apple.

Corning dropped its sales forecast for the fourth quarter of calendar 2011 to a loss of 25 percent quarter over quarter, down from its previous prediction of negative 15 percent. The company said the revised sales estimate is due to a lower demand for its scratch-proof Gorilla Glass for tablets.

Reacting to the news, analyst Maynard Um with UBS said in a note to investors on Wednesday that he believes the reduced forecast is related to weaker non-iPad demand, and is not a sign of slowing sales for Apple.

He estimates that Apple could have accounted for about 80 percent of Corning's Gorilla Glass revenue through December of 2010, but that number is now believed to have dropped to about 50 percent from March to September of 2011.

Um is standing by his estimate that Apple will sell 12 million iPads in the current December quarter, adding that he is "not worried." Even if iPad sales were to somehow buck the trend and drop 10 percent sequentially, he estimates the earnings per share impact would be only 11 cents, or about 1 percent.

Following what he called "weaker than expected" iPad sales in Apple's September quarter, Um took a more conservative outlook on tablet sales than he had previously adopted. He said it's possible that the ongoing recession could have caused some consumers to prefer a more traditional computer form factor with greater functionality.

Teardowns of Apple's iPhone 4 and iPhone 4S have revealed their glass is made of Gorilla Glass from Corning. The special glass is said to be 20 times stiffer and 30 times harder than plastic, thanks to a chemically strengthened alkali-aluminosilicate material. It's believed the same material is used to create the glass screen for the iPad.



There have been some recent concerns that Apple has reduced orders for the iPad 2 in its current quarter, but one report from earlier this month indicated that the company did so because it purchased an excess of components last quarter. Still, rumors have persisted that iPad sales are on the decline, and those claims continue with the release of products like the $199 Kindle Fire and Corning's declining Gorilla Glass sales.

But even as those rumors persist, there are other signs that iPad sales continue to grow. One poll of Apple's retail stores on Black Friday last week found that iPad sales were up 68 percent from the same day in 2010, with stores selling an average of 14.8 iPads per hour. And Apple Chief Financial Officer Peter Oppenheimer has said Apple expects to set new company records for both the iPhone and iPad during the current December quarter.

Last quarter, Apple set a new record for iPad sales, reaching 11.2 million units in the three-month period. Total iPad sales are now greater than 40 million, and Apple Chief Executive Tim Cook said he believes that the tablet market will eventually be bigger than the traditional PC market.

"There will be many, many more people that can access it," Cook said during his company's quarterly earnings conference call. "And the ease of use is so phenomenal and off the charts that I think it's a huge opportunity for Apple across time."
post #2 of 67
Too bad apple is too cheap to use Gorilla Glass. Would prevent a lot of cracked phones.
post #3 of 67
Quote:
Teardowns of Apple's iPhone 4 and iPhone 4S have revealed their glass is made of Gorilla Glass from Corning.

This is bad reporting. Tracing back all the links, the iFixit site actually says this:

"The front glass panel of the iPhone is reported to be constructed of Corning Gorilla Glass"

I'm not aware that this has ever been confirmed. My recollection of discussions at the time were that Apple actually didn't use Gorilla Glass. So it would be good for AI to cite a source if they are claiming otherwise.
post #4 of 67
I'm not convinced that this isn't an indication of slowing iPad sales. Corning could never of had a significant non iPad market to begin with. Unless they are counting items that we don't see as tablets like phones, navigation devices and the like.

Let's face it HP and RIM never did sell a lot of devices. I'm not sure what Amazon uses or even Barnes and Noble but they are growing sales. In the end I suspect that the only thing holding up IPad sales is Christmas after which the current model will move like a turtle out of the stores. This due to the anticipation of a new iPad 3. I suspect there is very very strong interest in an IPad 3 with a resolution doubled screen.
post #5 of 67
this is great news for the gorilla population, terrible news for poachers.
post #6 of 67
Quote:
Originally Posted by wizard69 View Post

I'm not convinced that this isn't an indication of slowing iPad sales.

It isn't because it has never been confirmed that the iPads use Gorilla Glass

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post #7 of 67
Quote:
Originally Posted by realitycheck69 View Post

Too bad apple is too cheap to use Gorilla Glass. Would prevent a lot of cracked phones.

Have you fact checked your reality? The Frobes articles states, "December 2010, Apple accounted for about 80% of Cornings Gorilla Glass revenue." So where are they using all this Gorilla Glass if not in their iDevices where a large, thin touchscreen panel needs a durable glass?

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post #8 of 67
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Originally Posted by charlituna View Post

It isn't because it has never been confirmed that the iPads use Gorilla Glass

¿Que? That reads like you're excluding the possibility simply because a confirmation hasn't been established.

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post #9 of 67
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Originally Posted by Dlux View Post

I'm not aware that this has ever been confirmed. My recollection of discussions at the time were that Apple actually didn't use Gorilla Glass. So it would be good for AI to cite a source if they are claiming otherwise.

Read SJ biography. It's written quite clearly not only did Apple use gorilla glass for iPhone (from the 1st one) the company that made the glass actually started manufacturing gorilla glass because of iPhone (changing their entire factory).
post #10 of 67
Quote:
Originally Posted by wizard69 View Post

I'm not sure what Amazon uses

The Kindle Fire uses gorilla glass. The e-ink Kindles do not.
post #11 of 67
Quote:
Originally Posted by SolipsismX View Post

Have you fact checked your reality? The Frobes[sic] articles states, "December 2010, Apple accounted for about 80% of Cornings Gorilla Glass revenue."

It would have been helpful if you provided a link. Here's what I found:

http://www.forbes.com/sites/ericsavi...le-ipad-issue/

"UBS analyst Maynard Um estimates that through December 2010, Apple accounted for about 80% of Cornings Gorilla Glass revenue."


So now we're passing this off to a UBS analyst's "estimates". Where is the original source link for that quote? (I can't find it.) Does Maynard Um know what he's talking about?

I'm not claiming (nor really care) that Apple uses or doesn't use Gorilla Glass, but someone, somewhere has to provide solid evidence before we base any assumptions on it's sale figures as a proxy for iPad sales.
post #12 of 67
Quote:
Originally Posted by realitycheck69 View Post

Too bad apple is too cheap to use Gorilla Glass. Would prevent a lot of cracked phones.

You seriously need a Reality check here...

Apple contacted Corning few years before they announced the iPhone. At that time, Corning had patent for the Gorilla glass but never produce it before Apple ask them samples.

It was part of the deal where both party can't mention each other relation, but every Apple glass product (iPod, iPhone, iPad, MacBook, iMac) are using Corning Gorilla glass from day 1.
post #13 of 67
Quote:
Originally Posted by matrix07 View Post

Read SJ biography. It's written quite clearly not only did Apple use gorilla glass for iPhone (from the 1st one) the company that made the glass actually started manufacturing gorilla glass because of iPhone (changing their entire factory).

Does it quote Steve Jobs saying "Corning Gorilla Glass" by name? If so, that's good enough for me. Otherwise I wonder if people aren't throwing the term around generically (kleenex) to describe 'tough glass'.
post #14 of 67
Quote:
Originally Posted by Dlux View Post

Does it quote Steve Jobs saying "Corning Gorilla Glass" by name? If so, that's good enough for me. Otherwise I wonder if people aren't throwing the term around generically (kleenex) to describe 'tough glass'.

SJ Bio mentioned Corning alkali-aluminosilicate glass. Steve Jobs personally sent a graceful note to Corning CEO to thanks him for their help and note "Without Corning, Apple wouldn't have been able to create the iPhone".
post #15 of 67
Remember the video of the iPhone 4 in the factory? I'm pretty sure they showed a 3—point bend test on the glass.


Quote:
Originally Posted by Dlux View Post

Does it quote Steve Jobs saying "Corning Gorilla Glass" by name? If so, that's good enough for me. Otherwise I wonder if people aren't throwing the term around generically (kleenex) to describe 'tough glass'.

Considering the dissenters aren't saying that Apple doesn't use any alkali-aluminosilicate glass, but that the iPhone cracks, breaks, scratches and is otherwise inferior because they don't use Gorilla Glass. This makes the argument over whether it's Corning or one of their competitors (e.g.: Ahasi's Dragontail) moot.

edit: Here's a video of Dragontail (note: I think Apple is using Corning's product): http://www.youtube.com/watch?v=WpbOoQpwAFs

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post #16 of 67
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Originally Posted by BigMac2 View Post

SJ Bio mentioned Corning alkali-aluminosilicate glass. Steve Jobs personally sent a graceful note to Corning CEO to thanks him for their help and note "Without Corning, Apple wouldn't have been able to create the iPhone".

Yes, we know all about that for versions 1, 2 and 3, but nothing has ever been confirmed for versions 4 and 5.
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post #17 of 67
Quote:
Originally Posted by Dlux View Post

This is bad reporting. Tracing back all the links, the iFixit site actually says this:

"The front glass panel of the iPhone is reported to be constructed of Corning Gorilla Glass"

I'm not aware that this has ever been confirmed. My recollection of discussions at the time were that Apple actually didn't use Gorilla Glass. So it would be good for AI to cite a source if they are claiming otherwise.

According to the Steve Jobs biography, Apple has been using Gorilla Glass from Corning since BEFORE it was marketed as Gorilla Glass. They called Corning to solve a problem and Corning pulled Gorilla Glass out to meet the need. That was for the iPhone classic.
post #18 of 67
Quote:
Originally Posted by SolipsismX View Post

Considering the dissenters aren't saying that Apple doesn't use any alkali-aluminosilicate glass, but that the iPhone cracks, breaks, scratches and is otherwise inferior because they don't use Gorilla Glass. This makes the argument over whether it's Corning or one of their competitors (e.g.: Ahasi's Dragontail) moot.

... but not moot considering the article.
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post #19 of 67
Quote:
Originally Posted by matrix07 View Post

Read SJ biography. It's written quite clearly not only did Apple use gorilla glass for iPhone (from the 1st one) the company that made the glass actually started manufacturing gorilla glass because of iPhone (changing their entire factory).

Read the 571-page biography? These guys can't even read the article this thread is attached to! lol. These guys also deny the US ever went to the Moon.

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post #20 of 67
Quote:
Originally Posted by BigMac2 View Post

SJ Bio mentioned Corning alkali-aluminosilicate glass. Steve Jobs personally sent a graceful note to Corning CEO to thanks him for their help and note "Without Corning, Apple wouldn't have been able to create the iPhone".

Ok, thanks.

I'm not sure there has ever been a definitive confirmation prior to the biography. Perhaps this was part of an agreement, as you said, between Apple and Corning where they don't mention each other by name (although Apple certainly mentions Intel and a few other key vendors), but if it was incorrectly inferred by careless analysts and then perpetuated by the press, it certainly wouldn't be the first time that has happened.
post #21 of 67
Quote:
Originally Posted by island hermit View Post

Yes, we know all about that for versions 1, 2 and 3, but nothing has ever been confirmed for versions 4 and 5.

This picture from the iPhone 4 video, show some alkali-aluminosilicate glass being demonstrated. We have to take a lot of steps to say the IPhone 4/4S aren't using this technology.

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post #22 of 67
Quote:
Originally Posted by SolipsismX View Post

This picture from the iPhone 4 video, show some alkali-aluminosilicate glass being demonstrated. We have to take a lot of steps to say the IPhone 4/4S aren't using this technology.

I'm not saying that it isn't some form of glass like Gorilla Glass.

I'm saying that it might not be Gorilla Glass and therefore any relationship between slowing Gorilla Glass sales and i devices might be complete crap.
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post #23 of 67
Quote:
Originally Posted by OllieWallieWhiskers View Post

this is great news for the gorilla population, terrible news for poachers.

The gorillas were never in danger. Apple's chemists have invented transparent aluminum. Jony Ive couldn't be happier that aluminum is on the front and back of the iPhone.



"Hello, Siri. I want to invent transparent aluminum."

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post #24 of 67
Quote:
Originally Posted by island hermit View Post

I'm not saying that it isn't some form of glass like Gorilla Glass.

I'm saying that it might not be Gorilla Glass and therefore any relationship between slowing Gorilla Glass sales and i devices might be complete crap.

Ok, we clearly agree on that point.

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post #25 of 67
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Originally Posted by Dlux View Post

although Apple certainly mentions Intel and a few other key vendors

Beside Intel, which is mentioned only on Apple website and don't even put Intel's stickers on the their product like every others do, I found very little examples of which Apple make promotion of another brand.
post #26 of 67
Quote:
Originally Posted by SolipsismX View Post

Ok, we clearly agree on that point.

Corning has announced recently the development of Lotus Glass for high resolution devices... hmmm... I wonder which customer will be using that...
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post #27 of 67
Quote:
Originally Posted by BigMac2 View Post

Beside Intel, which is mentioned only on Apple website and don't even put Intel's stickers on the their product like every others do, I found very little examples of which Apple make promotion of another brand.

Has anyone seen Amazon's Kindle Fire promoting Gorilla Glass?
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post #28 of 67
Quote:
Originally Posted by island hermit View Post

Yes, we know all about that for versions 1, 2 and 3, but nothing has ever been confirmed for versions 4 and 5.

Is your next complaint going to be that Apple doesn't use Gorilla Glass made by actual gorillas?
post #29 of 67
Quote:
Originally Posted by island hermit View Post

Has anyone seen Amazon's Kindle Fire promoting Gorilla Glass?

Exactly,

Many products on market use Gorilla glass without anyone having any knowledge of it. Like I said in a previous post, every glass Apple put in their product use Corning process.
post #30 of 67
Quote:
Originally Posted by BigMac2 View Post

Beside Intel, which is mentioned only on Apple website and don't even put Intel's stickers on the their product like every others do, I found very little examples of which Apple make promotion of another brand.

The video cards, certainly. Of course, in some cases, they simply have to because developers depend on that knowledge. (The glass used on their mobile devices isn't in that category.) They also called out Bose for the 20th Anniversary Mac, and Adobe Postscript for their imaging/printing software. I agree, though, that the examples are rare.

It always struck me as strange that Corning took out ads on the back covers of MacWorld magazine, obviously at great expense, without once mentioning Apple as a client. If that was part of an agreement then that explains the coyness.


(And there is a good reason for a high-volume manufacturer not calling out its components or vendors by name. If one particular vendor has production problems or changes specs then the product manufacturer can change to another vendor without having to update sales literature, press releases, manuals, etc. In theory it should be seamless to the buyer, although every now and then a vendor-specific issue arrises and they have to be identified to the public.)
post #31 of 67
Quote:
Originally Posted by Suddenly Newton View Post

Read the 571-page biography? These guys can't even read the article this thread is attached to! lol. These guys also deny the US ever went to the Moon.

post #32 of 67
Quote:
Originally Posted by GQB View Post

Is your next complaint going to be that Apple doesn't use Gorilla Glass made by actual gorillas?



"Are those made from real Girl Scouts?"
post #33 of 67
Quote:
Originally Posted by GQB View Post

Is your next complaint going to be that Apple doesn't use Gorilla Glass made by actual gorillas?

Much worse... FROM gorillas.
post #34 of 67
Quote:
Originally Posted by GQB View Post

Is your next complaint going to be that Apple doesn't use Gorilla Glass made by actual gorillas?

Complaint?

Hardly a complaint... but if you can show me an actual confirmation that the 4 and 4S use Gorilla Glass then that will settle it... right?
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post #35 of 67
Quote:
Originally Posted by Dlux View Post

Does it quote Steve Jobs saying "Corning Gorilla Glass" by name? If so, that's good enough for me. Otherwise I wonder if people aren't throwing the term around generically (kleenex) to describe 'tough glass'.

Yea since its been around forever and so many people use it that all fortified glass is now referred to as "Gorilla Glass" Do you think he'd refer to a Mercedes-Benz SUV as a "jeep"?
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post #36 of 67
Quote:
Originally Posted by dasanman69 View Post

Yea since its been around forever and so many people use it that all fortified glass is now referred to as "Gorilla Glass"

Possibly.
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post #37 of 67
Quote:
Originally Posted by realitycheck69 View Post

Too bad apple is too cheap to use Gorilla Glass. Would prevent a lot of cracked phones.

Nah, you are just a sucker for a brand name.

Whether or not Apple actually uses "Gorilla Glass" (there are conflicting reports), the glass they use has pretty much the exact same properties as "Gorilla Glass". Either way it's the same.

The way I heard it Corning wanted too much money, and also wanted their name placed on the products (iPhone, iPad, etc.), and in the advertising copy and Apple refused.

Smart move if true.
post #38 of 67
Quote:
Originally Posted by Prof. Peabody View Post

Nah, you are just a sucker for a brand name.

Whether or not Apple actually uses "Gorilla Glass" (there are conflicting reports), the glass they use has pretty much the exact same properties as "Gorilla Glass". Either way it's the same.

The way I heard it Corning wanted too much money, and also wanted their name placed on the products (iPhone, iPad, etc.), and in the advertising copy and Apple refused.

Smart move if true.

... and I'd believe that the glass used isn't actually Gorilla Glass (only important in relation to the article) but a product similar to it, considering that Samsung, Motorola and Asus actually use it by name in their spec sheets but Apple, Amazon, HTC and Nokia do not (Nokia is interesting in the fact they advertised GG for the N9 but not for the Lumia 800).
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post #39 of 67
Quote:
Originally Posted by dasanman69 View Post

Do you think he'd refer to a Mercedes-Benz SUV as a "jeep"?

I've seen the word 'jeep' applied to Land Rovers, Ford Broncos (the originals), and various european knock-offs. (In fact, that's a somewhat poor example since 'jeep' had indeed been used generically before it became a trade name used by Willys-Overland.)

I certainly would not put it past ill-informed or outright sloppy analysts to use 'Gorilla Glass' as shorthand for 'tough glass'. Remember the discussion about Apple's control over CNC milling production and a reporter called them 'lathes'? That might seem like semantic nit-picking, but when a story depends on a specific item as the basis for second-order analysis, we need to use unambiguous terms so that we know what's being referenced.
post #40 of 67
This is garbage to who ever has any tablet but informative to investors.Period.
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