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Apple Pays $578M in Advance to GT Advanced Technologies for Sapphire Production

Nov 9 2013, 2:47am CST | by , in News | Apple

Apple pays $578 advance payment to GT Advanced Technologies and signed a multi-year supply agreement to provide sapphire material. Why? Sapphire crystals will be utilized by Apple Incorporated and GTAT for making various products. The scratchproof nature of sapphire is the major reason for its usage by these two giants.

Apple Pays $578M in Advance to GT Advanced Technologies for Sapphire Production
 
 

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Apple Pays $578M in Advance to GT Advanced Technologies for Sapphire Production

A production plant is being built in Arizona by Apple. It will be put to proper use by GT Advanced Technologies. Sapphire crystals will get made in order to be employed in a number of products. At present, Apple incorporated uses sapphire crystals in its home device and camera aperture. 

However, there are hints that Apple is all set to advance its interests even further with the passage of time. The artificially produced sapphire has many features that are a source of attraction for Apple. Sapphire is way ahead of the sturdiest glass products. It is also colorless like glass. And of course it is very hard which means it is totally scratchproof. On the whole, it is a much better choice than glass. 

Sapphire even resists breakage if a crack appears in its structure. While being much denser than Gorilla Glass, sapphire crystals are the best you can get short of the hardest substance which is diamond. Apple will benefit from this new material once it gets integrated into its products. Compared with Gorilla Glass, sapphire ultimately comes out on top. So it is the choice element of construction for Apple. 

Meanwhile, GT has come up with a sapphire layer that is a hairbreadth in width being laminated on top of a glass sheet. This is more cost-effective than using a pure sapphire sheet. Apple is cooperating and collaborating with GT for a mutually beneficial deal. A multi-year sapphire supply agreement is signed between both. GT announces int its Q3 release, "Apple will provide GT with a prepayment of approximately $578 million. GT will reimburse Apple for the prepayment over five years, starting in 2015," according to TechCrunch. Whichever way you look at it, Sapphire is the crystal which Apple is ready to engage with in its creative endeavors. 

 

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
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