updated 02:35 pm EST, Mon November 7, 2011
Samsung only real source for OLED panels
Despite recent reports, it's unlikely that Apple will use OLED panels in its products anytime soon, says Canaccord Genuity analyst Jonathan Dorsheimer. Last Thursday a patent application emerged suggesting Apple interest in a more power-efficient OLED display. The news helped send stock of an OLED maker, Universal Display, up 17 percent during Friday trading.
Dorsheimer notes that the patent filing "seems to have gone viral among investors," but calls it an "irrelevant" piece of information. "We feel that Apple has always wanted to use OLEDs but performance and sourcing has limited the choices," he explains. "With Samsung providing 90% of the world's capacity, we don't see this changing until adequate second sourcing evolves, likely in 2013. We do not see Apple entering manufacturing of the screens, and thus there would be no direct royalty implications from Apple adopting OLEDs."
LG Display, AU Optronics, and Chimei Innolux are seen as likely second sources for OLED parts. Universal Display shares, meanwhile, have slipped roughly 9 percent on Monday so far.