"For instance, for the current display driver supply chain, Taiwan’s Vanguard is an IC foundry service provider to Novatek, which designs IC display drivers for panel maker LG Display, which in turn supplies smartphone screens to Apple," Ren reports. "If Apple moves its business to AMOLED market leader Samsung Electronics, it will have no need for Vanguard, Novatek and LG Display any more, because Samsung has a vertically integrated manufacturing process, from design to foundry to assembly."
"Bernstein Research‘s Mark Li came to Novatek and Vanguard’s defense today, although he continues to have a Neutral rating on both stocks," Ren reports. "His point is that Apple is likely to adopt AMOLED in only one of its models next year and Chinese smartphone OEMs are not likely to follow suit fast, so the Taiwanese companies have some breathing room."
Read more in the full article here.
MacDailyNews Take: Regardless of suppliers and next year’s iPhone models, we’re more than happy to have a full year to spend with our Jet Black 256GB iPhone 7 Plus units.
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