Apple awards iPhone glass maker Corning a further $45 million

Posted:
in iPhone
Apple is again contributing money to precision iPhone glass manufacturer Corning, with a further $45 million from the Advanced Manufacturing Fund to expand the company and its R&D.

A trainee worker at Corning (Source: Apple)
A trainee worker at Corning (Source: Apple)


Following its awarding of $200 million to Corning in 2017, and then $250 million in 2019, Apple has again awarded the glass company with investment from its Advanced Manufacturing Fund. The new award is for $45 million, and is specifically aimed at expanding Corning's manufacturing in the US, as well as driving research and development.

"Apple and Corning have a long history of working together to accomplish the impossible," said Apple's chief operating officer, Jeff Williams, in a statement. "From the very first iPhone glass, to the revolutionary Ceramic Shield on the iPhone 12 lineup, our collaboration has changed the landscape of smartphone cover design and durability."

"Ceramic Shield is a prime example of the technologies that are possible when deep innovation meets the power of American manufacturing," he continued. "We're so proud to work alongside Corning, whose 170-year-old legacy is a testament to the ingenuity of the US workforce."

"We are incredibly proud of our collaboration with Apple on Ceramic Shield, made possible in part through the Advanced Manufacturing Fund and the hard work and dedication of hundreds of individuals at Corning and Apple," said Corning chairman and CEO, Wendell P. Weeks.

"We thank Apple for our longstanding product-development partnership and for their continued commitment to supporting the American workforce," he continued. "The deep investment they've provided for new manufacturing technology in our Harrodsburg, Kentucky, facility is not only fueling life-changing innovation, it's also helping us sustain vital communities where we live and work -- a fundamental objective at both of our companies."

Apple most recently used its Advanced Manufacturing Fund to create over 700 jobs at optical technology firm II-VI.




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Comments

  • Reply 1 of 10
    Both emphasising the American angle there. Love that. 
    watto_cobra
  • Reply 2 of 10
    fred1fred1 Posts: 828member
    How about buying Corning outright?
    Beatswatto_cobra
  • Reply 3 of 10
    fred1 said:
    How about buying Corning outright?
    That would be a terribly terrible idea.  Corning's product mix is incongruent with Apple's products.    Apple doesn't do manufacturing because it makes no financial sense for them.   Manufacturing at the scale we're discussing only makes sense at extremely high volumes.  That means manufacturing for as many customers as possible.  Apple making glass for Apple wouldn't reach that type of volume.  The hypothetical Apple Glass company wouldn't be manufacturing glass for everyone else so their costs would be astronomical... consequently so would yours.  

    Never say never, but Apple is never getting into manufacturing.  There's no business case that makes any sense for them to ever do it.  Just like there's no business case for Apple buying Corning.  Their current relationship is optimal as is.

    More importantly, Samsung has an ownership stake in Corning.  
    edited May 10 mike1muthuk_vanalingamBeatsRayz2016dewme
  • Reply 4 of 10
    ravnorodomravnorodom Posts: 353member
    fred1 said:
    How about buying Corning outright?
    Corning does more than just iPhone stuffs. The company produces window glasses for cars, trucks, space capsules, optical fibers and many more. Too big for Apple to handle.
    muthuk_vanalingamwatto_cobra
  • Reply 5 of 10
    fred1fred1 Posts: 828member
    fred1 said:
    How about buying Corning outright?
    That would be a terribly terrible idea.  Corning's product mix is incongruent with Apple's products.    Apple doesn't do manufacturing because it makes no financial sense for them.   Manufacturing at the scale we're discussing only makes sense at extremely high volumes.  That means manufacturing for as many customers as possible.  Apple making glass for Apple wouldn't reach that type of volume.  The hypothetical Apple Glass company wouldn't be manufacturing glass for everyone else so their costs would be astronomical... consequently so would yours.  

    Never say never, but Apple is never getting into manufacturing.  There's no business case that makes any sense for them to ever do it.  Just like there's no business case for Apple buying Corning.  Their current relationship is optimal as is.

    More importantly, Samsung has an ownership stake in Corning.  
    That makes sense. Thanks for the explanation. Apple has enough cash to buy several countries too, but that doesn’t mean they should. 
    CloudTalkinRayz2016dewmewatto_cobra
  • Reply 6 of 10
    mr lizardmr lizard Posts: 279member
    “Life-changing innovation”? Jeez, calm down. 
  • Reply 7 of 10
    mike1mike1 Posts: 2,740member
    fred1 said:
    How about buying Corning outright?
    That would be a terribly terrible idea.  Corning's product mix is incongruent with Apple's products.    Apple doesn't do manufacturing because it makes no financial sense for them.   Manufacturing at the scale we're discussing only makes sense at extremely high volumes.  That means manufacturing for as many customers as possible.  Apple making glass for Apple wouldn't reach that type of volume.  The hypothetical Apple Glass company wouldn't be manufacturing glass for everyone else so their costs would be astronomical... consequently so would yours.  

    Never say never, but Apple is never getting into manufacturing.  There's no business case that makes any sense for them to ever do it.  Just like there's no business case for Apple buying Corning.  Their current relationship is optimal as is.

    More importantly, Samsung has an ownership stake in Corning.  
    Agreed. Device screens are only a portion of Corning's business. Apple would have no interest in the rest. Even if they spun off that part of the business, why would Apple want to get into the manufacturing of just one component? Funding development and having exclusivity for key technology is much better.

    CloudTalkinwatto_cobra
  • Reply 8 of 10
    BeatsBeats Posts: 2,527member
    Always makes me facepalm when iKnockoff morons say “iPhone screens break easier!!”

    fred1 said:
    How about buying Corning outright?

    Would have been a nice idea during the dawn of iPhone. Apple didn’t know Google would release knockoff iPhones back then. They would have charged all the current knockoffs for the tech. Steve bet big on Corning.
    watto_cobra
  • Reply 9 of 10
    sflocalsflocal Posts: 5,728member
    I do wonder why Corning needs this.  I haven't looked at their financials, but I would think the amount of money being invested here is not much compared to the bigger picture.  I presume this cash comes with a gentleman's agreement that benefits Apple of course.  

    watto_cobra
  • Reply 10 of 10
    sflocal said:
    I do wonder why Corning needs this.  I haven't looked at their financials, but I would think the amount of money being invested here is not much compared to the bigger picture.  I presume this cash comes with a gentleman's agreement that benefits Apple of course.  

    Corning didn't need the funding.  Apple uses their Advanced Manufacturing Fund to entice companies to collaborate on projects that have a specific interest for Apple.  In this instance, Apple's funding allowed a collaboration on cover glass formulation that probably wouldn't have happened under Corning's regular R&D budget.  It's essentially "here's some money, lets work on this thing"  They've used the fund to foster research with a number of companies.
    FileMakerFellermuthuk_vanalingam
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