“Shares of organic light-emitting diode technology maker Universal Display (OLED) are higher by $4.30, or almost 8%, at $60.71, after Goldman Sachs’s Brian Lee this morning raised his rating on the shares to Buy from Neutral, and hiked his price target to $76 from $55, writing that the company will benefit as Apple begins use of organic LED technology in the iPhone for the first time next year,” Tiernan Ray reports for Barron’s.
“‘We expect OLED to be a key beneficiary of Apple’s first-time adoption of OLED displays for iPhone starting in 2017,’ writes Lee, opining that there could be a ‘hockey-stick’ style of increase in OLED use in the phone industry in later years,” Ray reports. “Lee believes Universal can make as much as $15 per annum in a ‘blue sky’ scenario in which OLED spreads beyond just phone use to ‘larger-scale displays.’ That would include tablet computes and television sets.”
Ray reports, “Apple shares today are up $1.68, or 1.8%, at $96.90, following a report overnight from Taiwan’s Economic Daily saying Apple has asked its suppliers to produce 72 to 78 million new iPhones by the end of the year, the highest production target in about two years.”
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MacDailyNews Take:
We all know who is the leader in terms of mobile products. — Applied Materials CEO Gary Dickerson
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Apple suppliers gear up to deliver OLED to 2017 iPhone – May 23, 2016
Apple has done incredibly well in promoting the development of top quality LCD displays for iOS devices. Other companies jumped into OLED early in an attempt to differentiate themselves from Apple, but it took years for OLED to catch up. Now I believe that OLED technology has reached a point at which it satisfies Apple’s exacting display requirements, and I am looking forward to top-quality OLED displays on iOS products. Some approaches may need to change (e.g., dark versus light backgrounds) to adapt to the nature of OLED vs. LCD. But direct emissive technologies like OLED are the future and the performance of iOS products should benefit from this transition.