The gap between supply and demand is huge. Only 1/10 of iPhone 6 can use sapphire screen

The global production capacity of sapphire crystal ingots is insufficient. Only one out of 10 iPhone 6s to be launched may have a sapphire screen. According to the crystal ingot industry, the global production capacity is currently only 10 million pieces (approximately 2 inches). With the iPhone 6 sapphire screen plus non-Apple phones, the demand is several times the production capacity, which will definitely not be able to load. The iPhone 6 uses a sapphire screen. Although it has hired the exclusive crystal ingot supplier GTAT, it still sends a shock bomb to the sapphire industry. The main reason is that the gap between supply and demand is too large. From the demand side, based on Apple’s past experience, iPhone 6 will be shipped at least 10 million units per month after its launch. If all units are imported, the monthly demand for flat sheets will exceed 40 million units (approximately 2 inches). However, GTAT's active expansion of production this year seems to have encountered a bottleneck. The industry roughly estimates that the monthly production capacity of ingots converted into 2-inch flat wafers does not exceed 4 million pieces, and this has not yet taken into account yield variables. In other words, iPhone 6 requires 40 million units per month. If GTAT supply does not exceed 4 million units, only one out of 10 upcoming iPhone 6 units may be equipped with a sapphire screen. The industry believes that at the initial stage, only high-end models will be available, which will inevitably lead to panic buying among fruit fans. In the non-Apple camp, there are currently large factories such as Mono Crystal, Rubicon, and STC, plus small factories, with a total monthly production capacity of about 10 million pieces (approximately 2 inches), which is more than enough to currently supply LED substrates (monthly demand is about 3 million pieces) and mobile phone optical applications (about 1 million pieces for lens covers and HOME buttons). However, Samsung and Chinese mobile phone brands like to follow Apple's specifications. Once they follow suit and adopt sapphire screens, there will immediately be a huge gap in ingot production capacity. Based on the global monthly shipment of 50 million non-Apple smartphones, if only one fifth uses sapphire screens, the demand for flat wafers will exceed 40 million wafers (approximately 2 inches), which is equivalent to four times the global ingot production capacity. At present, many ingot factories in China have vigorously expanded their production, but it is unknown whether the quality can be used. This is why Apple initially sought exclusive supply from GT, instead of looking for products in the existing market, to avoid price increases and material shortages, which would affect iPhone shipments.