Abstract Abstract: At least 70% of sapphire manufacturers have not been optimistic about the application of sapphire on smartphones. The sapphire equipment and technology developed for smart phone panel applications have basically become chicken rib products. On February 15, 2017, Luxiao Technology...
Abstract: At least 70% of sapphire manufacturers have not been optimistic about the application of sapphire on smartphones. The sapphire equipment and technology developed for smartphone panel applications have basically become chicken rib products.
The wafer product category, which includes the sapphire business, generated revenue of only $15 million and a gross profit margin loss of 46.69%. The operating income of the shareholding company, Berne, is only 100 million yuan, and the operating profit loss is 48 million yuan.
Berne Laughter is a sapphire business with a joint venture with Berne Optics in May 2014. Lu Xiao holds 40% of the shares. It is widely believed that it was established in cooperation with Berne Optics' demand for sapphire materials on smart electronic products such as mobile phones and watches.
Sapphire is a unique crystal that combines excellent optical properties, physical properties and chemical properties. It has excellent properties such as high strength and hardness. It is widely used in LED substrate materials, consumer electronics, optical components, etc. Mainly in LED, smart watch surface, smart phone HOME button and camera cover.
In response to the downturn in the sapphire business, Luxiao Technology believes that the current demand for sapphire in smart terminal applications is mainly driven by whether Apple's iPhone and iWatch use sapphire, but it is affected by higher costs, if Apple's next generation mobile phones and watches are not The use of sapphire will affect the company's sapphire business.
The investment boom of the last wave of sapphire was mainly driven by the impact of Apple's investment in GT's sapphire business. At that time, the industry speculated that Apple would use sapphire instead of Corning's tempered glass on the protective panel of its mobile phone, which would drive the massive demand for sapphire materials.
However, as the material cost and production yield of sapphire could not be effectively broken, GT eventually failed to supply the sapphire products for mobile phone panel applications that Apple wanted. Apple also gave up the use of sapphire panels on mobile phones, and GT also went bankrupt. Ended the related business.
However, because Apple still uses sapphire material in the smart watch panel, smartphone HOME button and camera cover, it has given many illusions that the industry may use sapphire on a large scale. Continue to seek ways to reduce the cost of sapphire production.
As a supplier of apple cover glass, Lansi and Bourne also continue to invest heavily in the sapphire business. In addition to working with Orient, Lance has also installed thousands of sapphire crystal growth furnaces; Bourne is no exception, except Investing in Berne’s laughter, he also purchased thousands of sapphire crystal growth furnaces that were GT bankruptcy.
Luxiao Technology also said that it will continue to develop intelligent sapphire crystal growth furnace and sapphire growth and processing technology, reduce costs, improve yield, and continue to maintain the leading position in the country. The active development of large-capacity crystal furnaces will reduce production costs and lay the foundation for large-scale applications in the smart terminal market.
In addition, Luxiao Technology also believes that the sapphire industry has undergone large-scale investment in previous years, and its production capacity has grown rapidly and its quality has been uneven. However, as the market matures, some enterprises with low technical strength and small scale are already very Difficult to survive, the process of industry shuffling will be further accelerated. Some companies with high-tech, high-quality and large-scale production will have a good opportunity to acquire other companies and further integrate high-quality, high-quality sapphire suppliers.
Does this mean that in the unsatisfactory sapphire business, Luxiao Technology will continue to increase investment and take advantage of the current good acquisition of other companies to integrate into high-quality, high-quality sapphire suppliers.
In fact, it is not very satisfactory from the global sapphire market, and the general trend can be seen from the performance of the famous Russian sapphire company Monocrystal.
Monocrystal's market share in sapphire reached 33%. According to its 2016 full-year financial report data, Monocrystal's revenue in 2016 was US$57 million, and shipments increased by 18% year-on-year, but it was affected by significant price declines. Revenue decreased by 18% compared to 2015.
The sapphire wafer for LEDs (mainly used as a sapphire substrate) fell by 23% in 2016, while the price of sapphire crystal rods fell by 38%.
Not only that, but there are also foreign manufacturers who are developing synthetic diamond materials for electronic product panels to replace the sapphire panels cut from sapphire crystal rods. At the same time, the smart phone industry continues to dig deep into the decorative functions of reinforced glass panels. 3D curved full screen glass design.
If synthetic diamond material will pour sapphire in the high-end market for mobile phone panel applications, then the 3D curved full-screen glass design, the smartphone no longer needs the HOME button and the camera cover, the application scene of sapphire on the mobile phone panel will Will eventually disappear.
Mobile phone news online also found that at least 70% of sapphire production companies have not been optimistic about the application of sapphire on smartphones. The sapphire equipment and technology developed for smart phone panel applications are basically It has become a chicken rib product.
Guangdong Huayou Hardware Products Co.,Ltd , https://www.gdhuayouhardware.com