A new post on Weibo citing supply chain sources (via GforGames) claims Apple will produce only 10 million 5.5-inch iPhone 6 units throughout the product’s life-cycle is due to the increasing cost of sapphire, the high cost of producing the sapphire may hinder Apple's ability to include the scratch-resistant material in a large number of its smartphone versions.
The post notes that a sapphire display might cost 1743 yuan, or $280, which is a significant jump over the $44 estimated for the 4-inch Retina display used in the iPhone 5s, Rumors have suggested that Apple might increase the retail price of the next generation iPhone by $100, and this could be one of the reasons.
These latest reports suggest that the sapphire screen costs around 1743 yuan (or $280), which would raise the final cost of the device to about 8000 yuan (or $1285) – at least in China. At the moment, the 16 GB iPhone 5S costs 5288 yuan in China ($850), whereas the beefier 64 GB variant is retailed at the price of 6888 yuan (or $1106)Earlier report might reinforce this rumor, pointed that supply constraints may force Apple to reserve the sapphire display for premium iPhone models such as the 64GB version of the 5.5-inch iPhone 6.
Apple still buys sapphire from third-party suppliers, but is also starting production of the material in small quantities at its Arizona facility, is expected to produce between 100 and 200 million sapphire displays, enough for an entire line of devices when it reaches full operating capacity. The sapphire production plant is financed by Apple and operated by GT Advanced.
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