Market rumors that the new generation of Apple's iPhone may adopt sapphire crystal glass for the home button have been circulating and Taiwan-based sapphire substrate maker Tera Xtal has reportedly sent samples to Apple for verification. However, the firm refused to comment on the rumors.
The sapphire industry has been anticipating the possibility for sapphire substrates being adopted for non-LED applications in the third quarter of 2013. This could lower inventories and firms may be able to increase prices.
In 2013, prices of sapphire substrates for LED applications have been rigid. Industry sources noted that although prices of 2-inch substrates have been increasing slowly in the second quarter, the average price is still less than US$8/unit. On the other hand, as prices of sapphire substrates remain low, new applications may emerge.
Tera Xtal reported first-quarter 2013 consolidated revenues of NT$417 million (US$13.9 million), representing an on-year growth of 6.8%. However, first-quarter gross margin was negative 59.6%. Capacity utilization rate in the second quarter is expected to be stable, said the firm.
