Apple grants Corning another $250 million from Advanced Manufacturing Fund

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Comments

  • Reply 21 of 26
    wizard69wizard69 Posts: 12,896member
    JWSC said:
    JWSC said:
    macxpress said:
    Finally someone who gets it. 

    I used to live in the town next to Corning and drove past the Corning, Inc research facilities everyday. Yes, Corning makes a ton of other stuff...stuff we probably use in some form every single day. Fiber is one of their larger products, parts for LCD panels, Diesel filters, of course all kinds of different glass, etc. They make money yes, but Apple wants to make sure they're properly funded for what Apple wants as well. I don't see anything wrong with that. 
    There’s nothing wrong with Apple funding Corning’s R&D and production effort.  But the original poster “bobroo” had a perfectly valid question.  Companies that are interested in maintaining their growth will set aside a portion of their profits to reinvest in R&D and plant and equipment.  Is Corning not talking to Apple about their plans for future product needs?  It is odd.
    How is that valid?  There's nothing that implies Corning doesn't set aside a portion of their profits to reinvest in R&D and plants and equipment. In fact, the opposite is true. Based on the way you phrased the bolded sentence, I think you misinterpreted what the article is stating.  Apple is not funding Corning's R&D and production effort.  Corning funds their own R&D and production efforts to the tune of $990 million last year, $860 million in 2017,  and $763 million in 2016. https://www.statista.com/statistics/387730/research-and-development-expenses-of-corning/

    As I said earlier, just guessing, but it makes more sense that Apple is funding something specific and beneficial to Apple... not their entire R&D.
    I read the article just fine.  But I may have misunderstood what you wrote.  Apple may well be finding something specific.  The whole Advanced Manufacturing Fund enterprise appears to be rather vague.  That may be intentional on Apple’s part to obscure what they are really doing.  But we don’t know.
    There are so many possibilities here that we are only guessing!    Apple has done all sorts of things in the past from making huge prepayments to partnering to build plants.   People seem to covet the secret and not so secret projects Apple has going.  This could be car related, glasses related or something we never heard of.  There are many possibilities besides phones.  
    JWSC
  • Reply 22 of 26
    What if they are working to develop fiber inside or push the boundaries of Thunderbolt to a point where connections between devices are as fast as if they are in the same package. I don't think this investment has anything to do with Gorilla glass or displays.
  • Reply 23 of 26
    gatorguygatorguy Posts: 21,283member
    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    You're making assumptions here that aren't supported by facts.  What makes you think Corning doesn't sell GG at a profit?  Certainly nothing in the article.  What makes you think the profit they do generate isn't enough to fund R&D?  Certainly nothing in the article.  Who says Corning needs Apple's money?  No one.  If we're guessing - and we both are - wouldn't a better guess be that Apple is funding research that may not relate to Corning's general line?  They're funding research into tech that will specifically benefit Apple in some way like priority access or supply exclusivity or a totally different tech that's not GG... something in that pipeline Tim's always talking about.  Remember, Corning makes a heckuvalot more than GG.
    As I've understood it Apple's Advanced Manufacturing Fund works more as a prepayment against future product shipments, intended to speed up the availability of products that Apple has or will be contracting for.  They are not "general research" grants. There's a debt created at Corning for instance that is repaid with shipments of product to Apple. 
  • Reply 24 of 26
    avon b7avon b7 Posts: 4,298member
    gatorguy said:
    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    You're making assumptions here that aren't supported by facts.  What makes you think Corning doesn't sell GG at a profit?  Certainly nothing in the article.  What makes you think the profit they do generate isn't enough to fund R&D?  Certainly nothing in the article.  Who says Corning needs Apple's money?  No one.  If we're guessing - and we both are - wouldn't a better guess be that Apple is funding research that may not relate to Corning's general line?  They're funding research into tech that will specifically benefit Apple in some way like priority access or supply exclusivity or a totally different tech that's not GG... something in that pipeline Tim's always talking about.  Remember, Corning makes a heckuvalot more than GG.
    As I've understood it Apple's Advanced Manufacturing Fund works more as a prepayment against future product shipments, intended to speed up the availability of products that Apple has or will be contracting for.  They are not "general research" grants. There's a debt created at Corning for instance that is repaid with shipments of product to Apple. 
    This is how I understand it too. 

    A couple of years ago people were claiming Apple had invested in TSMC and then TSMC came out and said it wasn't an investment in the company but more of an up front payment to ensure orders could be met.

    This Corning payment could be something like that (or exactly that).
  • Reply 25 of 26
    gatorguygatorguy Posts: 21,283member
    avon b7 said:
    gatorguy said:
    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    You're making assumptions here that aren't supported by facts.  What makes you think Corning doesn't sell GG at a profit?  Certainly nothing in the article.  What makes you think the profit they do generate isn't enough to fund R&D?  Certainly nothing in the article.  Who says Corning needs Apple's money?  No one.  If we're guessing - and we both are - wouldn't a better guess be that Apple is funding research that may not relate to Corning's general line?  They're funding research into tech that will specifically benefit Apple in some way like priority access or supply exclusivity or a totally different tech that's not GG... something in that pipeline Tim's always talking about.  Remember, Corning makes a heckuvalot more than GG.
    As I've understood it Apple's Advanced Manufacturing Fund works more as a prepayment against future product shipments, intended to speed up the availability of products that Apple has or will be contracting for.  They are not "general research" grants. There's a debt created at Corning for instance that is repaid with shipments of product to Apple. 
    This is how I understand it too. 

    A couple of years ago people were claiming Apple had invested in TSMC and then TSMC came out and said it wasn't an investment in the company but more of an up front payment to ensure orders could be met.

    This Corning payment could be something like that (or exactly that).
    I believe it was Finisar  (TrueDepth sensor) who originally made it clear the fund was used for pre-paying against future orders, and did so via an SEC filing. Too many claims that Apple was "investing" in Finisar using the fund and thus the necessary disclosure. 
    edited September 19
  • Reply 26 of 26
    avon b7avon b7 Posts: 4,298member
    gatorguy said:
    avon b7 said:
    gatorguy said:
    bobroo said:
    A guy would like to think that Corning would have been selling Gorilla Glass at a profit over the past 10 years. Enough profit to fund research and development.

    Why would Corning need Apple's money? Seems like irresponsible management to me. Seems like the fruit company bought Gorilla Glass in the past and at their suggestion for something different, has to pay some more.

     I don't understand.
    You're making assumptions here that aren't supported by facts.  What makes you think Corning doesn't sell GG at a profit?  Certainly nothing in the article.  What makes you think the profit they do generate isn't enough to fund R&D?  Certainly nothing in the article.  Who says Corning needs Apple's money?  No one.  If we're guessing - and we both are - wouldn't a better guess be that Apple is funding research that may not relate to Corning's general line?  They're funding research into tech that will specifically benefit Apple in some way like priority access or supply exclusivity or a totally different tech that's not GG... something in that pipeline Tim's always talking about.  Remember, Corning makes a heckuvalot more than GG.
    As I've understood it Apple's Advanced Manufacturing Fund works more as a prepayment against future product shipments, intended to speed up the availability of products that Apple has or will be contracting for.  They are not "general research" grants. There's a debt created at Corning for instance that is repaid with shipments of product to Apple. 
    This is how I understand it too. 

    A couple of years ago people were claiming Apple had invested in TSMC and then TSMC came out and said it wasn't an investment in the company but more of an up front payment to ensure orders could be met.

    This Corning payment could be something like that (or exactly that).
    I believe it was Finisar  (TrueDepth sensor) who originally made it clear the fund was used for pre-paying against future orders, and did so via an SEC filing. Toot many claims that Apple was "investing" in Finisar using the fund and thus the necessary disclosure. 
    Yes! That was the one. Not TSMC.
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