“Trip Chowdhry of Global Equities Research today writes that the worries about rumored supply-chain cuts in Apple‘s iPhone production are overdone because the cuts pertain to a change of technology, not a change in demand patterns, in his opinion,” Tiernan Ray reports for Barron’s.
“Chowdry, reiterating an Overweight rating on Apple shares and a $650 price target, argues Apple has been shifting from using traditional displays to instead use the emerging semiconductor technology ‘IGZO,’ a compound semiconductor process made up of indium, gallium, and zinc-oxide,” Ray reports. “Sharp Electronics, the pioneer in the technology, talked about it extensively last week at the Consumer Electronics Show in Las Vegas.”
Ray reports, “Chowdhry is convinced by what he saw at CES, and other trade-show events, that Apple is in fact moving to IGZO.”
Read more in the full article here.
MacDailyNews Take: That’s probably too logical an explanation for Wall Street to absorb.
[Thanks to MacDailyNews Reader “JES42” for the heads up.]
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Analyst: Apple a ‘prime candidate’ to adopt Sharp’s IGZO display technology in future devices – January 8, 2013
Qualcomm to invest up to $120 million in Sharp; help with development of IGZO display technology – December 4, 2012
Sharp boosts IGZO display output; shares soar – October 22, 2012
Sharp tips highly efficient ‘iPad min’ IGZO screen tech – October 17, 2012
Is Sharp exhibiting high-res iPad mini IGZO displays? – October 2, 2012
Sharp’s IGZO display production issues forced Apple settle on Plan B for new iPad, says expert – May 7, 2012
Analyst: Retina display production issues persist for Apple iPad – April 23, 2012
Sharp announces production of world’s first IGZO LCD Panels – April 13, 2012
After using Apple’s new iPad with Retina display, old iPad screens become absolutely unacceptable – March 30, 2012
Apple ‘iTV’ beckons as jackpot in Hon Hai’s Sharp gamble – March 28, 2012
Foxconn-Sharp partnership likely targeting Apple orders – March 28, 2012
Taiwan Apple supplier Hon Hai becomes Sharp’s largest shareholder with 10% stake – March 28, 2012
Apple to unveil smaller 7.85-inch iPad this year, says anonymous Samsung official – March 13, 2012
Wow, Sharp sure is ramping up IGZO display production for some reason – March 2, 2012
Apple iTV unlikely to launch in 2012 due to IGZO display panel manufacturing concerns, sources say – February 3, 2012
@MDN – my thoughts exactly. Maybe it will sink in a month after it happens.
No, it will happen a day after all the call options that were written by wall street expire worthless
Thank God for some common sense in all this madness. Too many Analysts talk negatively about Apple with their head up their ass ( that what Anal in analyst stands for). If you look at Apple objectively you see that a they have a well laid out plan and multi billion dollar companies do not go in the crapper in just a matter of days or weeks.
thats what Anal in analyst stands for
+∞! Priceless!
This rumor for IGZO has been plowing the Internet for some time now. It is logical to assume Apple would use this tech for a while until another manufacture has a better method. But, it makes more headlines and profit in the confusion by laying out FUD on Apple.
The bigger news in the link is that IGZO allows them to make a flexible display.
IGZO’da fact?
Now that the Investment Companies have driven down Apple’s stock, they now can buy it, and drive it back up
Next wallstreet and media will drive down the prices again when Apple cuts back on the core iPhone frames. . . as Apple transitions to “liquid metal”. 😉
Terms like “bulls” and “bears” should have givien you a clue long ago that Wall Street doesn’t run on logic. If it did, stock prices would change 4 times a year.
When I read this, I thought EXACTLY!!! They spun to weak demand for the iPhone 5! Really?! Anyone who follows Apple and has common sense would easily realize that weak demand was NOT the reason. It’s just columnists trying to get the “clicks.” It’s funny how you HARDLY hear anything about Microsoft and the Surface. It’s cause nobody care so therefore no columns, Lol!
Gee, would the WSJ apologize if they were wrong
Another attempt to excuse nonsensical, false report on order cuts that treats it as fact.
For starters, the initial rumour report cites Sharp Display, which is manufacturer of IGZO. So if you are to believe this “report”, then you have to understand that the supposed “cut” already takes into account whatever movements towards IGZO, since it is within the same manufacturer.
So all of those articles that try to rationalize total fantasy of this rumour are just wasting their own and their readers’ time. There is nothing to ponder about in relation to that false rumour.
you CANNOT ASSUME that just because it is the same manufacturer that one assembly line order has been “cut” when another assembly line for a different product has been ordered fully by apple. These are two different stories and can be used to manipulate. Both stories at the same time cannot are a stalemate.
Good lord! A useful tech analyst article! I thought they were extinct.
IGZO, writes Chowdhry, will solve all that for Apple, most importantly because it’s simpler to make, but it will also allow Apple to produce devices with “flexible,” meaning bendable, displays, as “the deposition happens at room temperature” in the IGZO manufacturing process.
Chowdhry opines that along with benefits to Apple, use of IGZO will help Sharp itself, and also Applied Materials (AMAT) and Corning (GLW).
I be Samsung is seething. I like it.