“Shares of several Apple suppliers traded sharply lower in Asia Monday morning trade following a report from Bloomberg that the tech giant was making screens of its own,” Cheang Ming reports for CNBC.
“Apple is reportedly investing in developing “next-generation MicroLED screens” that aim to make devices slimmer and less of a drain on power, Bloomberg said,” Ming reports. “Apple makes use of a network of suppliers that includes Samsung Electronics, which produces OLED panels for the iPhone X. Samsung shares were down 0.51 percent as of Asia morning trade, having pared some losses after falling more than 1 percent earlier.”
“LG Display, which is reportedly expected to start supplying displays to Apple, was lower by 0.89 percent,” Ming reports. “Over in Japan, shares of Sharp were down 2.57 percent. Japan Display fell 1.45 percent after earlier recording a decline of more than 3 percent.”
Read more in the full article here.
MacDailyNews Take: Some companies, including likely some of the ones mentioned, will have to produce these displays for Apple if they ever get the tech mature enough. We’d not expect Apple to build and run their own MicroLED factories.
SEE ALSO:
Apple is developing its own MicroLED displays in a secret manufacturing facility – March 19, 2018
Apple hits speed bump in Micro LED development – November 20, 2017
DisplayMate: Apple’s iPhone X has the most color accurate display we’ve ever measured; it is visually indistinguishable from perfect – November 8, 2017
Apple plans micro-LED displays for wearable devices; could come as soon as 2018 – June 8, 2017
Apple’s research in micro-LED displays highlights a fundamental strategic shift – June 29, 2016
Apple acquires 21 LuxVue patents with some using synthetic sapphire – May 6, 2014
Apple acquires LuxVue, maker of power efficient micro-LED technology – May 2, 2014
[Thanks to MacDailyNews Reader “Fred Mertz,” “Dan K.,” and “David E.” for the heads up.]
While I’m not complaining about those companies suffering a drop in share price, it doesn’t make much sense that their price drops now.
It’s only a rumour about a project which hasn’t yet born fruit and isn’t expected to reach the public for a few years.
Obviously stock markets reflect the prospects of companies, but there will inevitably be other factors which will have much more impact on their stock price before any of this technology shows signs of affecting their bottom line.
Stocks are down today overall. This is normal market behavior. Some days it’s up. Some days it’s down. It has nothing to do with Apple rumors.
MDN Take+:
Not only that, but it will be YEARS before this technology sees the light of day. Why are stocks dropping TODAY for something that probably won’t hit the markets until at least 2020. It’s all ridiculous…
It may seem ridiculous… and, in some cases, it is ridiculous when the stock market responds to rumors. But you need to think of stock from an investment perspective relative to bonds and other types of investment vehicles. The question that you should always ask yourself is what kind of return will this investment return on my capital relative to the degree of risk involved? In other words, how is this stock going to behave going forward, and would I be better off putting my money somewhere else? As a result, a credible rumor regarding a component shift from a major name brand selling 200+ million units per year is a big new risk factor. The reaction is a bit premature and knee-jerk, but the longer term concern is valid.
Some people weight past performance heavily. Past performance is certainly one consideration that can factor into a risk assessment – has the company demonstrated that it can evolve and adapt as times change? But the proverbial “buggy whip” companies, for example, might have had strong past performance metrics right up until automobiles began proliferating. When there is a fundamental shift in technology, nimble companies are more likely to be able to adapt and thrive. Larger companies may have more capital to throw at the challenge, but their large size and entrenched culture and processes tend to create a lot of inertia against change.
“Why are stocks dropping TODAY”
“Post hoc ergo propter hoc” is perhaps the most common logical fallacy. I see it all the time in stock market reporting. A news story is announced, then the stock market falls, so people assert that the news story _caused_ the drop in stock prices. People tend to want to believe “that which followed” was caused by “that which preceded”.
Except today’s stock market drop is not really an Apple story at all, since the entire market is off. The share price changes are not specific to only Apple and its screen suppliers.
Also, the stock market fluctuates a good deal on its own without any real news or “precedent”.
If any news contributed to today’s stock market sell-off, I would guess it is the geo-political news about Cambridge Analytica exploiting FaceBook user data and discussing “business” with Russia. Pretty wild and crazy stuff. It suggests Trump is a total and complete liar, phony, and corruptor of US democratic processes, and he is ruining the country, the region, and the world. Generally, none of it good for the stock market.
What crap. Apple’s share price fell just as much, so how does that help Apple. It really looks like an overall down market day. Honestly, MicroLED displays won’t be out for years, so why should it affect any company today.
Samy…