Apple partner in its new Arizona sapphire plant, GT Advanced Technologies, has announced earnings for the fourth quarter of 2013. The report puts into perspective what their deal with Apple means to the company.
“Our arrangement to supply sapphire materials to Apple is progressing well and we started to build out the facility in Arizona and staff the operation during the quarter,” said Gutierrez. “We are pleased to have Apple as a sapphire customer and to be in a position to leverage our proprietary know-how to enable the supply of this versatile material. While our primary focus during the balance of the year is to continue to execute on our commitments in Arizona, our aim is to position GT not only as an exceptional sapphire supplier to Apple but also as an unparalleled world-class supplier of sapphire material and equipment to a variety of customers.
GT’s revenue for the second half of 2013 was reduced considerably by the agreement to halt sales of its sapphire production furnaces in order to focus on building capacity for Apple. The company’s full-year revenue suffered, dropping to $299 million in 2013, compared to $733.5 million in 2012.
The company predicts revenue will remain low in the first half of 2014, but forecasts a considerable jump in revenue for the second half, with income for that period representing 85% of the company’s full-year revenue of $600-$800 million.
Such a timeframe would be in line with an iPhone 6 launch in the usual September-October timeframe.
GT expects sapphire to account for 80% of their revenue for the year, and Apple will most likely account for the largest share of that piece of business. That means Apple’s business could generate $400-$500 million for GT this year.