OLED Shares Jump On iPhone News

  • Shares of Universal Display Corporation OLED were trading up roughly 8 percent on Wednesday afternoon.
  • The surge was triggered by rumors about Apple Inc. AAPL planning to use OLED displays in future iPhones.

According to an article published in The Korea Times, Apple is in talks with Samsung SSNLF’s affiliate Samsung Display Co. The iPhone maker is allegedly considering starting to use organic light-emitting diodes (OLED) displays in its phones as of 2018.

"Samsung Display-manufactured OLED displays have so far been used in all Galaxy flagship smartphones… But demand for handsets will remain weak as time goes by because the handset industry will be reshaped further," a high-ranking executive told The Korea Times last week.

"Samsung Display needs to have a long-term contract with new and trustworthy major customers for OLED displays," he assured, adding that the company was also approaching Chinese phone makers.

However, the sources also explained that this move would take a few years, as LCD displays are still considerably cheaper than OLEDs, and Apple intends to keep its margins as high as it can.

Nonetheless, the executive explicated, "prices are being brought down and other technological issues are rapidly being addressed. If Apple adopts OLED technology in its next iPhones, this will benefit the entire ecosystem in the global display industry."

In fact, a few weeks ago, well-known Apple insider Ming-Chi Kuo had also suggested that the iPhone 7 would not feature an OLED display, although the iPhone 8 might.

 

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Posted In: NewsEmerging MarketsRumorsMarketsMoversTechiPhoneThe Korea Times
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