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Universal Display slumps; Galaxy S5 to reportedly use LCDs

  • A Chinese site reports (translation) Samsung is having trouble mass-producing Super AMOLED displays featuring 2K (2560x1440) resolutions for the Galaxy S5, and has thus decided to have its next-gen flagship phone use Sharp (SHCAY) LCDs.
  • Universal Display (OLED -2.4%), which gets over half its revenue from Samsung, sold off in afternoon trading thanks to the report. The relatively moderate size of the drop suggests investors have their doubts about the report.
  • Ramping sales to Samsung - particularly sales of green host/emitter materials for the Galaxy S4 and other high-end Samsung smartphones - allowed Universal to post triple-digit materials revenue growth in Q3.
  • Samsung announced in November it plans to launch phones with 2K displays in 2014, and phones with 4K displays in 2015. There's plenty of skepticism regarding the practical value of placing such high-res displays on smartphones.
Comments (2)
  • sidney
    , contributor
    Comments (351) | Send Message
    " The relatively moderate size of the drop suggests investors have their doubts about the report." no doubt the long investors being exposed to a near daily fud attack hosted on SA over the course of several months developed a thicker skin. Another sure sign to short holders that their opportunity costs of moving on to stocks with less informed investors is getting higher than ever.
    6 Jan, 04:54 PM Reply Like
  • Out to Win
    , contributor
    Comments (14) | Send Message
    Universal Display (OLED) shares are significantly overpriced. While they have a great cash balance sheet their profits over the past 4 years have lagged. Why would anyone buy shares of OLED at $30+ with little profits and no dividends ___ when they could purchase a giant like Intel with a sold long term history of profits and a decent dividend for less money per share? There are many good solid companies to invest in that still have a P/E ration below 15 and that pay decent dividends ___rather than risk our money on a tiny company like OLED with overpriced shares and only one truly meaningful customer.
    7 Jan, 02:50 PM Reply Like
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