“Reflecting on the fourth-quarter warning yesterday by Corning about a shortfall in glass demand for LCD displays, UBS’s Maynard Um this morning writes that it likely wasn’t because of any problem with demand for Apple’s iPad,” Tiernan Ray reports for Barron’s.
“Apple last year probably was about 80% of Corning’s total demand for its ‘Gorilla Glass,’ which is used heavily to reinforce smartphone and tablet screens,” Ray reports. “That may have dropped to 50% this year, perhaps because of the new non-iPad devices, perhaps because of inventory build-up.”
Ray reports, “In any event, Corning’s shortfall is ‘likely more related to weaker non-iPad demand, AAPL lesser degree’ …Um writes he’s still comfortable with his 12 million-unit estimate for the iPad this quarter.”
Read more in the full article here.
eh.
Guess we know that Gorilla Glass isn’t the mystery iphone component in short supply that is holding back production!
Jumping to conclusions much?
Corning didn’t even have a Gorilla glass business two years ago. How can demand from a few tablet makers impact its results that way ?
My guess is that Corning ramped up production and the demand did not materialize from would-be Apple competitors, so Corning ends up with excess capacity. Plus, I saw an article about a next generation glass that is tougher and more flexible than GG.
I hope they use ‘curved’ Gorilla-glass in the rumoured iTV.
That’s good sh*t, Maynard Um.
This is more evidence that the iPad competition will “give up” trying to complete head-to-head with iPad going forward, based on specs, features, and price. They’ll focus on the low end and give Kindle Fire plenty of competition.