Apple pours $250 million into Corning for future iPhone glass research

[nanoguy]

The big picture: Apple is looking to contribute $350 billion to the US economy and create over 20,000 new jobs by 2023, as part of a five-year plan that started in 2018. Recently, the company announced the continuation of its partnership with Corning, who will be awarded $250 million for the development of new glass technology for Apple's future mobile devices.

Back in 2017, Apple revealed it would commit $1 billion towards the development of advanced manufacturing facilities in the US, with the ultimate goal of creating more jobs. A fifth of that investment fund went into Corning's Kentucky plant, covering costs like equipment, research and development, and glass processing.

Recently, the Cupertino company announced it will pour an additional $250 million from its $5 billion Advanced Manufacturing Fund to support Corning in developing glass technology specific to Apple's needs, including "state-of-the-art glass processes, equipment and materials integral to the delivery of next-generation consumer devices."

Corning has been supplying Apple with glass for iPhone, iPad, and Apple Watch, ever since the launch of the original iPhone and up until this year's iPhone 11 lineup. The new funding is supposed to continue that partnership and foster the production of components in the US, which is one of the biggest points of criticism directed at the company by Trump's administration.

While Apple isn't likely to make its mobile devices in the US anytime soon, the company wants to create "a new era of technology-driven manufacturing in the US." To that end, it claims to have spent over $60 billion in 2018 with 9,000 American suppliers to support 450,000 jobs across 50 states and manufacturing locations that operate in 36 states. For Corning, in particular, Apple created 1,000 jobs and spent over $3 billion since the iPhone launched in 2007.

It's worth mentioning that Apple and Corning didn't disclose the terms of the $250 million deal, but we do know the latter is hard at work developing an ultrathin, flexible glass that can bend to a 5 millimeter radius. Also, Corning is going to demo its glass technology for AR headsets at Semicon Taiwan this week. We've been hearing hints and rumors that Apple is building its own AR glasses for a while now, so here's hoping we will see "one more thing" from the company in 2020.

Permalink to story.

https://www.techspot.com/news/81938-apple-pours-250-million-corning-future-iphone-glass.html

 

[trparky]

They just had to have those comical rubber duckies. LOL

People complain about how Apple devices are expensive. Well, here is the reason! Research and development. You can't get new stuff if you don't money to make it. Welcome to capitalism.

 

[Vulcanproject]

They just had to have those comical rubber duckies. LOL

People complain about how Apple devices are expensive. Well, here is the reason! Research and development. You can't get new stuff if you don't money to make it. Welcome to capitalism.

Apple charge what they do because they can. Not because that is how much it costs them for R&D. I'm not making a judgement I'm just saying it how it is.

Capitalism is fundamentally about profit, not progress.

We hope for progress as a byproduct, but it's not always the aim and definitely not always the result.

 

[trparky]

Apple charge what they do because they can. Not because that is how much it costs them for R&D. I'm not making a judgement I'm just saying it how it is.

Where do you think that Apple got this $350 million to just throw at Corning? By buying an iPhone you indirectly fund the kinds of things that lead to innovation and new products.

The same can be said about any company you can think of. Intel, AMD, nVidia, Samsung, etc. The money that you pay them today goes into the research and development to make for tomorrow's new products. This is how capitalism works. This is the R&D cycle boiled down to a single sentence.

 

[VitalyT]

Apple is all about looking good vs being good, which is the general perception of the US today.

 

[Vulcanproject]

Apple charge what they do because they can. Not because that is how much it costs them for R&D. I'm not making a judgement I'm just saying it how it is.

Where do you think that Apple got this $350 million to just throw at Corning? By buying an iPhone you indirectly fund the kinds of things that lead to innovation and new products.

The same can be said about any company you can think of. Intel, AMD, nVidia, Samsung, etc. The money that you pay them today goes into the research and development to make for tomorrow's new products. This is how capitalism works. This is the R&D cycle boiled down to a single sentence.

You just said in your first post the reason Apple's products are expensive is because of R&D. I said that isn't why they are expensive. It's why they have to cost a certain amount, but not why they cost the total amount they do.

Re: Intel.

Obvious the money to develop comes from reinvesting some of their profits. Still, the fact remains they charge a lot more than the simple cost of R&D and production. Profit. That's capitalism as a simple concept.

 

[trparky]

You just said in your first post the reason Apple's products are expensive is because of R&D. I said that isn't why they are expensive. It's why they have to cost a certain amount, but not why they cost the total amount they do.

Re: Intel.

Obvious the money to develop comes from reinvesting some of their profits. Still, the fact remains they charge a lot more than the simple cost of R&D and production. Profit. That's capitalism as a simple concept.

You do realize that there's more than just R&D cost right? There's marketing, technical support, production costs, shipping cost, and that's just the beginning. Then you have whatever the retail store wants to add on top of the MSRP to keep the lights on. Sure, there's profit but it's not the whole story.

People who have no idea how a business works and how it's funded love to say that things are too expensive.

 

[QuantumPhysics]

They just had to have those comical rubber duckies. LOL

People complain about how Apple devices are expensive. Well, here is the reason! Research and development. You can't get new stuff if you don't money to make it. Welcome to capitalism.

Apple charge what they do because they can.

Capitalism is fundamentally about profit, not progress.

That's absolutely not true.

Capitalism is about creating a product that strikes a balance between inexpensive and profitable.

Inexpensive enough to continue to produce in an environment people can afford it - yet efficient enough to be profitable - thus ensuring the future of the company and the worthwhile investment into that company.

Apple charges what it wants because they can. But why can they? It's because they have no competition.

No one else can run iOS.

No one else offers apple's build quality level.

Apple can't charge "$3000" per phone because they know the market won't support it. So they charge as little as possible while still making a profit. I would also argue that they want their product to be exclusive so that their product continues to stand above others.

It's like Bugatti Chiron vs. a Toyota Camry.

Bugatti has no competition. No one else can build a car like Bugatti builds a car - although lesser cars exist. Bugatti can charge basically whatever they want for the ability to drive at 300 MPH. the market (of multi millionaires, billionaires and new money) will bear it.

 

[wiyosaya]

That ad is a lame piece of marketing Pop a rock in there and see how it stands up. I would not buy an iAnything based on a cutesy ad that does nothing but appeal to my emotions like this ridiculous ad does.

They just had to have those comical rubber duckies. LOL

People complain about how Apple devices are expensive. Well, here is the reason! Research and development. You can't get new stuff if you don't money to make it. Welcome to capitalism.

Apple charge what they do because they can.

Capitalism is fundamentally about profit, not progress.

That's absolutely not true.

Capitalism is about creating a product that strikes a balance between inexpensive and profitable.

Inexpensive enough to continue to produce in an environment people can afford it - yet efficient enough to be profitable - thus ensuring the future of the company and the worthwhile investment into that company.

Apple charges what it wants because they can. But why can they? It's because they have no competition.

No one else can run iOS.

No one else offers apple's build quality level.

Apple can't charge "$3000" per phone because they know the market won't support it. So they charge as little as possible while still making a profit. I would also argue that they want their product to be exclusive so that their product continues to stand above others.

It's like Bugatti Chiron vs. a Toyota Camry.

Bugatti has no competition. No one else can build a car like Bugatti builds a car - although lesser cars exist. Bugatti can charge basically whatever they want for the ability to drive at 300 MPH. the market (of multi millionaires, billionaires and new money) will bear it.

What you say may be true in a utopian world, but IMO, it is the basis of all societal dysfunction in that they only care about making a profit.

crApple, if it could and may yet, would love to be the only company selling anything like they have. It shows from the fact that one has to pay royalties to them for using pretty much anything of theirs.
No one else can run iOS. bullcrap. No one else wants to run iOS because they would have to pay so much in royalties to crApple that running iOS would be a losing proposition. crApple supported X86 platforms, but not anymore - unless, perhaps, you hack it.

But then again, crApple is experiencing a lack of interest from the general population who are tired of shelling out an arm and a leg for the latest iCrap. No one will shell out $3,000 for an iPhone. crApple would never survive if it raises prices that far.

And who gives a crap about being able to do 300 MPH in a Bugatti? No one. Absolutely no one. There is NO legal place to use it except taking it to a track, and then most people would almost certainly not know how to handle a car like that - even if they have the pocket change Bugatti charges. Its a totally useless vehicle from a practical standpoint. It contributes nothing to society except to bolster the testosterone levels of those who have the pocket change and think they need something to complete themselves. All one of those says is "look at me! I have more money than God and you don't."

I know you love crApple and have an attitude that the more it costs, the better it is, but personally, I think that aspect is a pipe dream that societal attitudes have placed on the highest possible pedestal and then try to sell to everyone.

 

[Hexic]

You just said in your first post the reason Apple's products are expensive is because of R&D. I said that isn't why they are expensive. It's why they have to cost a certain amount, but not why they cost the total amount they do.

Re: Intel.

Obvious the money to develop comes from reinvesting some of their profits. Still, the fact remains they charge a lot more than the simple cost of R&D and production. Profit. That's capitalism as a simple concept.

You do realize that there's more than just R&D cost right? There's marketing, technical support, production costs, shipping cost, and that's just the beginning. Then you have whatever the retail store wants to add on top of the MSRP to keep the lights on. Sure, there's profit but it's not the whole story.

People who have no idea how a business works and how it's funded love to say that things are too expensive.

It’s no secret that Apple’s margins are very high - because they can charge more knowing that their customers are buying into the brand. They could charge less and still chug along just fine, but they have higher margins because they choose to; hence iPhones are typically more expensive than competition.

All other companies also have marketing, R&D, manufacturing, etc. - that’s nothing new, and doesn’t affect their “premium” price tier. Globally, there are more Androids out there than there are iPhones. Because globally, not everyone can afford to pay a very large sum of money for something they’re going to replace within the next 2-5 years anyways.

Apple products are good, not fantastic - in their own markets. They have lots of competition, Samsung and Huawei outsell Apple globally, and that competition doesn’t have to be selling iOS, because that is irrelevant.

There’s no hiding the fact that Apple products are more expensive because they can be, not because the “company cost” demands it. If you can’t grasp that, I have an offer from a flat-earther who’s related to Santa Claus with an excellent time-share offer available for you...

 

[Vulcanproject]

You do realize that there's more than just R&D cost right?

Still, the fact remains they charge a lot more than the simple cost of R&D and production.

Yes. Yes I do. Apparently you read selectively though.

That's absolutely not true.

Capitalism is about creating a product that strikes a balance between inexpensive and profitable.

I'm not sure what you're arguing against here but the definition of capitalism isn't really up for debate. It's about making a profit. Acquiring as much personal wealth as you can. Anyone can look in dictionary.

So they charge as little as possible while still making a profit.

As little as possible! Apple aren't a non profit organisation, therefore their goal is to make as much as possible. I didn't take up that issue positively or negatively in that post. Which means your claim is a bit weird my man.

The idea of capitalism is to charge as much as you can, providing the goods and services at the highest price the most consumers will pay, to maximise profits. This is straightforward economics.

 

[p51d007]

Tougher maybe from scratches, but not tougher from drops.
I've had smartphones for 10 years, and not once, have I scratched a screen. I don't even bother with screen protectors. But, I don't stuff my phone in my hip pocket, front pocket with keys, change and what not either. It stays in a belt case when not in use.
People treat these overpriced things like crap, then complain when the screen gets damaged.

 

[trparky]

All other companies also have marketing, R&D, manufacturing, etc. - that’s nothing new, and doesn’t affect their “premium” price tier. Globally, there are more Androids out there than there are iPhones. Because globally, not everyone can afford to pay a very large sum of money for something they’re going to replace within the next 2-5 years anyways.

The stupid part that you're forgetting is that Samsung's own flagship device prices are now coming close to that of Apple prices. The only thing that you don't get with Samsung and you do get with Apple is guaranteed OS upgrades for a minimum of four years which is practically unheard of anywhere else in the Android ecosystem unless of course, you get a Google-branded device.

The guaranteed iOS upgrades for four years is what draws me to the iPhone. That and the fact that if I have a problem all I have to do is call Apple or walk myself into an Apple Store and I get help. If I have a problem where my device needs to be replaced, I walk into an Apple Store with my broken phone and I walk out half an hour later with a new device in hand. That phenomenal customer and technical support along with guaranteed iOS updates are what literally draws me to the iPhone.

That kind of experience is unmatched anywhere in the Android world and if you ask me, it's worth it to pay for that kind of experience. Now when it comes to my computers? Yeah... I build them myself.

 

[captaincranky]

....[ ]....And who gives a crap about being able to do 300 MPH in a Bugatti? No one. Absolutely no one. There is NO legal place to use it except taking it to a track, and then most people would almost certainly not know how to handle a car like that - even if they have the pocket change Bugatti charges. Its a totally useless vehicle from a practical standpoint. It contributes nothing to society except to bolster the testosterone levels of those who have the pocket change and think they need something to complete themselves. All one of those says is "look at me! I have more money than God and you don't.....[ ]....

Personally, I think Bugatti could sell quite a few more Chirons if they changed their marketing strategy, and sold it as a penile enhancement device..

(Of course it's tacitly known that's what it is already. But then why hold back? Come right out with it. <(Notice the double entendre)).