Apple's $250M Corning Award May Be Win For iPhone 'Survivability,’ U.S. Manufacturing
‘Apple is trying to bring some of these manufacturing parts back to the United States. Also the tariffs leave’much to the unknown,’ says Michael Goldstein, CEO of LAN Infotech, a Fort Lauderdale, Fla., solution provider.
Apple said Tuesday that it will invest $250 million into iPhone and Apple Watch glass supplier Corning Inc., a move that partners said represents a win if it fuels a more durable screen for devices and spurs more U.S. manufacturing.
“[F]irst thought that comes to mind is that hey, from casseroles to communications, we have always trusted the quality and durability of Corning products, haven’t we?” said Douglas Grosfield, president and CEO of Kitchener, Ontario-based Five Nines IT Solutions Inc. “One of the most common issues in our connected world as IT providers is the non-stop repairs of mobile devices due to drops, bumps and bangs. If this helps improve the survivability of a smartphone, then it’s good news all around.”
Michael Goldstein, CEO of LAN Infotech, a Fort Lauderdale, Fla., solution provider, said that “Apple is trying to bring some of these manufacturing parts back to the United States. Also the tariffs leave much to the unknown.” In its press release, Apple emphasized that all of its core products — from iPhone and iPad to Mac, Apple Watch and Apple TV — contains parts or materials from the U.S. or is made with equipment from U.S.-based suppliers.
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The Cupertino, Calif.-based tech giant said in its announcement that it’s awarding the $250 million from its Advanced Manufacturing Fund to Corning, building on another $200 million Apple gave to Corning from the same fund in May 2017. According to the release from Apple, the “combined investment supports Corning’s research and development into state-of-the-art glass processes, equipment and materials integral to the delivery of next-generation consumer devices.”
Apple said that glass for every generation of iPhone, including iPhone 11 and iPhone 11 Pro -- which will be available later this week -- has been made at Corning’s Harrodsburg, Kentucky plant. The newest iPhone models feature the toughest glass ever in a smartphone, as well as a back machined from a single piece of glass that allows for wireless charging.
Apple and Corning have been product development partners for more than a decade, and the Harrodsburg facility has played a key role in delivering glass solutions for the iPhone since its inception in 2007, when Gorilla Glass revolutionized the industry, Apple said.
CRN has reached out to Corning and Apple for further comment.
Apple stock was up marginally (.10%) on Tuesday afternoon to $220.12.