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GT Advanced Technologies, AŞ Message Board

  • asianhiddentreasure asianhiddentreasure Feb 11, 2014 9:53 PM Flag

    Apple's trick to fool their competition

    The news leaked out that Apple will use sapphire for IPHONE 6. Now Apple played a trick to fool their competition by purposely leaking out some news through their vendors, so that their competition will delay the use of sapphire on their phone. Apple's core competitive advantage is that they always have something exciting before their competition. Let's assume apple delaying the use of Sapphire till 2015, that is after GTAT will able to sell sapphire machines to other vendors. By then, the sapphire cost drops but Apple may AT MOST only have several months lead of their sapphire phone. Strategically, it loses competitive advantage by doing that. Apple's sales drops recently especially in Asia due to its "coolness" magic has been over taken by Samsung, LG and etc. Apple urgently needs some excitement in its products that is not present in their competition. People on this board discussing the advantage of gorilla glass vs sapphire is missing the point. Anything that can restore the "cool" image of Apple is worth much more than that function's actual advantage. That is why Apple invested 500 million on this deal and they required a non-disclosure clause for the deal. If one can imagine Apple as a business and valuate options Apple have to restore their image among consumers, he/she shall see sapphire phone is inevitably coming. And they have to come quick, so that Apple can sell 500 million phones before another major competition can catch up. Apple's core customer is NOT budget sensitive, they are fashion seekers, trend followers. I am not sure how much competition Apple will fool. But it definitely fooled lots of investors for GTAT,