GT Advanced Technologies Falls 13 Percent After iPhone 6 Debut

 

Screenshot courtesy of Google Finance

Screenshot courtesy of Google Finance

 

After Apple showed off it’s new iPhone 6 and the Apple Watch the stock for GTAT, or GT Advanced Technologies rumored to be the producer of sapphire screens for the new phone plummeted 13%. The September 9th event was devoid of mention of the sapphire screen for their phones, however their watch seems to be using the sapphire technology. This makes sense since the Sapphire screen on the iPhones would have forced Apple to increase their price mark by about $100 per unit, and the screen size on these watches are pretty small. Unfortunately this means less revenue for GTAT and hence the huge price drop. I do see GTAT advancing in the moderate to long term as more manufacturers embrace the scratch proof material going forward, and the use in just the Apple Watch will keep GTAT from under-producing.

blue-sapphireAs GTAT is an American manufacturer, there is also a risk they will be undercut by cheaper foreign manufacturers – only time will tell.