Last month I wrote an article in which I addressed that I suspected shares of Himax (NASDAQ:HIMX) may have bottomed out at the $6.60 area and were looking for a reversal upwards. Although a small reversal back to $8 occurred, it has become evident that there are still fears that Himax is no longer producing LCOS displays for Google Glass and the stock has continued to shift slightly downward as a result.
Earlier this week an unconfirmed "Rumor" stated that Google is in talks with Samsung and will use their OLED displays instead of the Himax LCOS display in future Google Glass models. Our research determined that there is no factual basis in the report that Google has changed to Samsung OLED displays. In fact, we believe that it is unlikely for Google and Samsung to partner on this project at all. Recent reports have revealed that Samsung is planning their own version (Gear Glass) to compete with Google Glass. There is also growing tension between the two companies as Samsung just released a new smartphone with Android rival Tizen.
Unfortunately, I do not anticipate Google or Himax to make a statement that they maintain their current relationship. It is most likely that the two are contractually prohibited from making such an announcement. This creates a perfect opportunity for anyone to create rumors that the two have broken their partnership. However, Google maintains it's 6.3% ownership of Himax and will possibly acquire additional ownership in the near future.
CNBC recently announced that Google is making a fashionable version of Glass through a collaboration with designer Diane von Furstenberg. Ray-Ban and Oakley were also mentioned in the segment. The Himax displays in this report shows sufficient evidence that the LCOS displays from Himax will still be used in future versions of Google Glass.
Disclosure: I am long HIMX, GOOGL.