Apple, Inc (NASDAQ:AAPL) has hired an unfamiliar Belgian company; Solvay SA for the supply of plastic for its iPhone 6. This was reported by Bloomberg yesterday. Apple (NASDAQ:AAPL) is well known for its products like Macintosh computers, MAC OS X, iPhones, iPads, iPod and the company is famous for its unique and sleek design and high definition features offered in these products.
Where Apple’s iPods have revolutionized the digital music era, at the same time, their smart phones have created a new trend among cell phone users. Although, the products designed by Apple (NASDAQ:AAPL) are a bit expensive but they are always praised for their user friendly and high quality features. Apple’s (NASDAQ:AAPL) latest smart phone iPhone 6 and iPhone 6 Plus were released in September and has made record sales.
About 10 million handsets were sold during its first week. Where almost 4 million devices were pre ordered on the first day alone. The latest Apple (NASDAQ:AAPL) products; iPhone 6 & iPhone 6 Plus come with features like a large display with Retina© HD, extremely thin bodies and much more.
— The phones will operate on Apple’s latest smart phone operating system “iOS 8”
However, the not-so-famous Belgian chemical company, Solvay SA (EBR:SOLB) has earned once in a lifetime chance to gain repute, market and fame. The company (EBR:SOLB) has been manufacturing quality chemicals since 1863 and has been operating in 56 countries. The company at present has net sales of around €9.94 billion.
“We have always operated by imposing on our minds a duty of continuous progress”.
— Ernest Solvay (founder of Solvay SA)
Analyst Jeremy Redenius said “This undisclosed contract is good news for Solvay”. The deal can bring profits of as much as €100 million. This can bring a 180° change for the company. Solvay (EBR:SOLB) will be providing PEEK (polyether ether ketone) for Apple iPhones. PEEK is a tough, hard and high temperature resistant (up to 500°F) semi-crystalline engineering thermoplastic.
This polymer has a vast array of applications ranging from synthetic polymer limbs and circuit boards to aerospace. Although the plastic is tough and durable but requires greater investment and efforts for its production.
— Solvay SA (EBR:SOLB) will be supplying plastics (PEEK) for the internal parts of the latest iPhone 6.
The company (EBR:SOLB) started manufacturing PEEK after they bought an Indian chemical company, since then they been providing good quality PEEK to different consumers. Recently the company joined hands with a European company “Victrex Plc” (LON:VCT) in order to meet the large number of demands. Victrex is by volume the largest chemical company operating in Britain.
However, the details of this contract have not been disclosed as yet. Moreover, the representatives of the companies i.e. Apple (NASDAQ:AAPL) & Solvay (EBR:SOLB) couldn’t be reached to comment on the new partnership. However, this news can help Apple in purchasing good quality PEEK at economical rates and bring about a tremendous change for the Belgian company.