Russia's Monocrystal identified as Apple Watch sapphire supplier
Apple's scratch resistant sapphire supplier for the Apple Watch is reportedly Monocrystal, a Russian firm which has become the largest synthetic sapphire manufacturer in the world.
The company's annual revenue is up to $87 million, and it was one of the only sapphire manufacturers to post an operating profit by the end of 2014, according to Sputnik News. The depreciation of the ruble in the past year -- owing to falling oil prices, and economic sanctions after the invasion of Ukraine -- has made it more economically competitive.
Apple uses Monocrystal's 2-inch sapphire wafers, which account for 40 percent of the latter's output, Sputnik said. Monocrystal is reportedly looking to exploit the low ruble to boost 2-inch production from 4 million units a month to 5 million by the end of the year.
It's not clear how much of Monocrystal's wafer production might be dedicated to Apple, as it serves a number of clients, including other watchmakers.
Apple has also been vague about the number of Watch sales so far, claiming success but choosing not to publish any unit numbers or even break out revenue. Analyst estimates have varied wildly for the June quarter, anywhere between 2 million and 4.2 million.
The company's original sapphire supplier was supposed to be an American firm, GT Advanced Technologies, with which it helped establish a factory in Mesa, Arizona. GT ultimately went bankrupt however, blaming unreasonable demands by Apple, something the latter denied. The aftermath is still being resolved in court.
The company's annual revenue is up to $87 million, and it was one of the only sapphire manufacturers to post an operating profit by the end of 2014, according to Sputnik News. The depreciation of the ruble in the past year -- owing to falling oil prices, and economic sanctions after the invasion of Ukraine -- has made it more economically competitive.
Apple uses Monocrystal's 2-inch sapphire wafers, which account for 40 percent of the latter's output, Sputnik said. Monocrystal is reportedly looking to exploit the low ruble to boost 2-inch production from 4 million units a month to 5 million by the end of the year.
It's not clear how much of Monocrystal's wafer production might be dedicated to Apple, as it serves a number of clients, including other watchmakers.
Apple has also been vague about the number of Watch sales so far, claiming success but choosing not to publish any unit numbers or even break out revenue. Analyst estimates have varied wildly for the June quarter, anywhere between 2 million and 4.2 million.
The company's original sapphire supplier was supposed to be an American firm, GT Advanced Technologies, with which it helped establish a factory in Mesa, Arizona. GT ultimately went bankrupt however, blaming unreasonable demands by Apple, something the latter denied. The aftermath is still being resolved in court.
Comments
For such a beautiful device it's a pity they can make it more like Tesla does all in house..
Why? You really think there is a difference between government owned companies and private ones?
Why? You really think there is a difference between government owned companies and private ones?
Journalism 101. You need to disclose to the reader potentially biased sources, which means all state media, regardless of the country. Go read some regular news for once.
http://www.reuters.com/article/2015/07/23/us-china-markets-finance-idUSKCN0PW1GR20150723
http://www.seattlepi.com/news/world/article/Turkish-state-media-8-soldiers-killed-in-6452734.php
http://www.mmtimes.com/index.php/business/16054-central-bank-dismisses-rumours-of-bank-run.html
http://www.voanews.com/content/memorial-services-held-in-tianjin/2923494.html
In Russia yiu shouldn't believe any kind of news. I understood that the OP was referring to the supplier being government owned as being relevant. Not the source of the information
And in Russia you only make business when you're close to Putin. Therefore, it's not really important IMO as there is no distinction in the end between the two.
I seem to recall there were a bunch of rumors that Apple was going to use sapphire for the iPhone when they bought GT Advanced.
Did anyone ever confirm Apple used Gorilla Glass for the iPhone 6 and 6 Plus?
The marketing for the new 6s and 6s Plus could say that the "s" stands for sapphire. Seems unlikely but might be cool if they did use it.
Too bad Apple has to rely on countries like China and Russia.
I seem to recall there were a bunch of rumors that Apple was going to use sapphire for the iPhone when they bought GT Advanced.
Did anyone ever confirm Apple used Gorilla Glass for the iPhone 6 and 6 Plus?
The marketing for the new 6s and 6s Plus could say that the "s" stands for sapphire. Seems unlikely but might be cool if they did use it.
Yes the iphones all still use GG3 today, I am still of the belief that Sapphire was never intended for the phone, it was always for the watch, GT just put the screws to apple which force the delay of the watch to spring of this year I believe it was ready last fall, but with out the sapphire they had to wait, also they probably was going to put it on 100% of the watches, since most all watch over $300 usually have sapphire cystals, at least all the ones I have bought.
If Samsung really wanted to show that they don't copy Apple slavishly, they should make their next phone screens out of Gorilla Glass with diamond coating.
Yes, Apple uses Gorilla Glass. It's getting tiring to have to repeat this.
Immagine Walls Street Analysis sniff around Russian companies to get an idea of what Apple is doing. You know all the rumors will be completely crazy, I not sure if Russians know how to tell the true, the stories they come up are far better than the truth. Truth in Russia is boring.
Too bad Apple has to rely on countries like China and Russia.
If this report is true, it is a bit disappointing (as a US Citizen) that a (US) company (GTAT) which had an opportunity, failed to (or wasn't able to) capitalize on it. I (we) don't know what exactly happened, but it would have been nice to have some manufacturing, especially of more quality components, brought back state side. At least in this area we still have Corning (being US).
At least the CEO is out, but still, a sad turn of events. Oh well...
I can't agree with that. Why the need for 2,250 extra large furnaces to produce the small covers for a watch? Makes no sense. No way that Apple would spend a total of over $750 million for watch sapphire cover production start-up.
Why? You really think there is a difference between government owned companies and private ones?
Yes. Journalists who work for state owned media outlets in Russia have a much, much longer life expectancy than those who don't.
Yes. It's Russia...
The sapphire glass on my SS Watch is sensational. Nearly four months of ownership, I've banged it around, yet not even the slightest nick or scratch!
Because of the size GT was attempting to grow was indicative of the final product being earmarked for screens much larger than an Apple Watch.