Apple’s iWatch to Spur Sapphire Market Demands in 2015, Analyzes LEDinside

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Apple’s iWatch to be released in late 2014 will be using sapphire watch covers, according to the latest “2014 Global Sapphire Market Report” by LEDinside, a research division of TrendForce. iWatch sapphire watch covers are expected to account for six percent of global sapphire market demands, the research organization projected.

If iWatch sales reach the market’s optimistic forecast of 60 million in 2015, it will make up 27 percent of sapphire usage volume. Overall sapphire market consumption will double in 2015 to reach 129%.

Graph 1: Sapphire market demand percentage analysis. (LEDinside)

Sapphire watch covers can be applied in Apple wearable devices

The Apple iWatch to be released at the end of 2014 will be introducing sapphire material, according to LEDinside surveys. Sapphire is hard and scratch resistant, and has been used as watch covers in traditional luxury watches for many years. However, the large handheld device market demands strongly contrasts with luxury watches small market demand of 1 million watches. Therefore, conventional sapphire manufacturing method, which requires Verneuil process to grow sapphire crystals, will be unable to meet handheld devices large market demands. According to iWatch specs, a special type of sapphire ingot must be manufactured to meet processing and design demands in later stages, which explains Apple’s establishment in the sapphire industry supply chain.

iWatch sales to determine sapphire industry demands in 2015

The first Apple iWatch will come in men and women models, and completely use sapphire watch covers. The male iWatch version display will be 1.66 inch, while the female model is 1.33 inch. If the iWatch released at the end of 2014 has a 5 million sets demand volume, it will account for about 6 percent of the sapphire market demand volume. Industry insiders have different opinions on iWatch total shipment volume in 2015. According to LEDinside understanding the device’s stockup volume for 1Q15 has reached 13 million units. If sales exceed expectations, shipment volume might reach the optimistic market forecast of 60 million in 2015. Thus, iWatch sapphire usage volume would reach 27 percent of global sapphire usage volume, more than doubling sapphire market consumption in 2015 to 129%. Therefore, iWatch’s market acceptance will become a key factor in determining whether the sapphire industry will encounter a supply shortage in 2015.

LEDinside 2014 Sapphire Substrate Market Report

Language: English 

Date of Publication: May 15, 2014

Page: 276

Format : E-file 

Chapter I Sapphire Substrate Industry Overview 

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 1.1 Technology Development History of Sapphire Substrate Industry

 1.2 Sapphire Substrate Production Process

Chapter II Discussion on Advanced technology of Sapphire Substrate Industry 

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 2.1 Mainstream Sapphire Ingot Technology

 2.2 Mainstream Sapphire Substrate Technology

 2.3 Mainstream Pattern Sapphire Substrate Technology

 LEDinside reserves the right to change the content 

Chapter III Discussion on Global Supply Chain Related to Sapphire Substrate 

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 3.1 Sapphire Substrate Materials Overview

 3.2 Sapphire Crystal Growth Furnace Equipment Overview 

Chapter IV Supply-side Analysis of Global Sapphire Substrate Industry 

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 4.1 Sapphire Substrate Industry Supply Chain Trend

 4.2 Sapphire Ingot Manufacturer Capacity Overview

 4.3 Sapphire Substrate Manufacturer Capacity Overview

 4.4 Pattern Sapphire Substrate Manufacturer Capacity Overview

 4.5 Major Manufacturer’s Business Performance and Market Development

 4.6 Sapphire Manufacturer Business Strategies in LED and non-LED Markets

 4.7 Sapphire Substrate Industry Sufficiency- Supply and Demand 

Chapter V Global Sapphire Substrate Market Price Trend 

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 5.1 Sapphire Industry Price Trend Analysis- Ingot, CSS, and PSS

 5.2 Sapphire Industry Long-term Price Forecast- Ingot 

Chapter V Global Sapphire Substrate Market Price Trend 

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 5.1 Sapphire Industry Price Trend Analysis- Ingot, CSS, and PSS 

 5.2 Sapphire Industry Long-term Price Forecast- Ingot 

Chapter VI Analysis on Demand for Sapphire Substrate in LED Market      

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 6.1 LED Market Value and Volume Forecast

 6.2 MOCVD Installation Volume Forecast 

 6.3 2013~2018 Global LED Market Demand (Total Sapphire Volume and By Region) and Wafer Size Trend 

 6.4 Chip Manufacturers' Sapphire Substrate and PSS Supply Chain 

 6.5 LED Chip Manufacturer Revenue Ranking and Capacity Estimates 

 6.6 Major LED Chip Manufacturer Profile 

 6.7 Chip House PSS Introduction Rate and in-house PSS Production Rate 

 6.8 Advanced LED Chip Technology 

 6.9 LED Chip Price Trend

 6.10 Cost Analysis of Sapphire Substrate in LED Chip 

 6.11 Analysis on Advantages and Disadvantages of Four-inch and Six-inch Sapphire Substrates 

 6.12 Alternative Materials of Sapphire Substrate in LED Application Market 

Chapter VII Sapphire Substrate in Emerging Applications 

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 7.1 Window Film and Telecommunications Component Market and Technology Prospect 

Sapphire Substrate in SOS Market Overview

• SOS in RF IC and Sensor Application Market
• With SOS Technology, UltraCMOS® Has Better Performance
• SOS in CMOS Application- Peregrine
• SOS To Be Replaced by SOI Due to Better C/P Ratio
• Sapphire Substrate in Windows Film Market Overview
• Sapphire Substrate in Windows Film Market Overview
• Sapphire Substrate in Medium-Wave Infrared Windows Market Overview

7.2 Sapphire in Handset Device Market Outlook and Supply Chain Development • Sapphire in Smartphone Overview

• Camera Lens: Sapphire Camera Lens in Smartphone
• Home Button: Fingerprint Recognition Applications on Smart Phones
• Sapphire Cover Glass Helps to Improve Capacitive Fingerprint Recognition System
• Other Manufacturers Ramping
• Camera Lens and Home Button Are the Major Application in 2014
• Sapphire Cover Glass in Smartphone
• Currently, Only a Few Companies Apply Sapphire As Cover Glass, There is Still a Long
• Way to Go For Mass Production
• APPLE Will Apply Sapphire to Protect Screen!
• Why Does APPLE Need Sapphire to Protect Screens?
• Challenges to Appear in Introducing Sapphire Screen that APPLE Has to Overcome

 a. Increase Capacity: KY Method with Low Drilling Rate, GTAT and STC Methods are More Suitable for Square Panel for Sapphire Cover Glass 

 b. Increase Capacity: GTAT’s ASF is Helpful Sapphire Cover Glass in Phones 

 c. Reduce Cost Greatly: Sapphire Substrate Lamination Patent 

 d. Reduce Cost: Cutting Technology and Lamination Patent Makes Sapphire Cover Glass to Be Achieved in Short Time 

 e. Manage Supply Chain: Supply Chain Management: APPLE Ensures the Supply Source of Sapphire Ingot and Assures Quality, GTAT only Applies EMT’s Aluminium Trioxide 

 f. Manage Supply Chain: Analysis on APPLE Aggressively Secure Sapphire Supply Chain 

• Phone Camera Lens and Home Button Supply Chain- iPhone 5S & 5C
• Estimated Apple Shipment Schedule
• How Sapphire Manufacturers Coordinate With Mobile Production Cycles Will Be a Major Test

7.3 Sapphire Substrates Market Value for Non-LED Applications 

• Sapphire Substrates Market Value for Non-LED Applications: Demand Forecast of Sapphire Material in Window Film and Telecommunications Components Markets 
• Sapphire in Mobile Device Market has Growth Potential
• Sapphire Demand Forecast in Mobile Application
• Analysis of APPLE iWatch’s Sapphire Screen
• The Increasing Proportion of Sapphire Substrate In All Kinds Of Non-LED Application: Handset Device Owns The Most Growth Potential 

Please contact Ms. Joanne Wu for further details.

Taipei

Ms. Joanne Wu

Tel:  +886-2-7702-6888 ext. 972      

E-mail: joannewu@ledinside.com