Universal Display slumps; Galaxy S5 to reportedly use LCDs

|By:, SA News Editor

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.