Tanlong Photoelectronics will benefit from Apple’s push in the sapphire substrate market, Aastocks.com cited a member from the Chinese company’s security department saying. Although, there has been no growth in the company’s sapphire growth furnace orders, increased downstream demands are expected to spur the company’s furnace sales.

Sapphire substrate will be applied in certain new products, said Apple CEO Tim Cook recently in an interview. Latest sources have also pointed out Apple’s sapphire substrate glass plant in Arizona will be launched in Feb. 2014. These factors led to soaring sapphire substrate stock prices in the Chinese stock market on Feb. 10, 2014.

With Apple sapphire substrate application as a precedent, other manufacturers might also follow suit and look for Chinese OEMs, commented the Tanlong Photoeletronic source. As downstream sapphire substrate demands increase, it will act as a growth momentum for upstream manufactures equipment sales. Yet, it still depends on how long it takes before downstream demands reaches upstream manufacturers.

The same source also revealed Tanlong Photoelectronics sapphire growth furnace has started small volume shipments. The company does not have high sapphire production equipment standards. It all depends on the client’s technology. Currently, the company and Jingsheng are major sapphire growth furnace companies listed on China’s A-Shares Market. 

A Guolian Securities analyst noted, Tanlong Photoelectronics sapphire growth furnace equipment indexes have reached mass production standards, and current partnership talks with big clients will help the company reach a big breakthrough.

The company’s 3Q13 financial report revealed revenue for Jan.-Sept., 2013 grew 20.41 percent YoY to RMB 206 million (US$ 33.98 million). However, the company’s stockholders net profit slumped 59.53 percent to incur losses of RMB 350 million.