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Corning Inc. Message Board

  • gfo99 gfo99 Sep 20, 2013 1:38 PM Flag

    Bleak outlook for Gorilla Glass


    Which brings me now to Corning, a stock that has drastically underperformed virtually every benchmark, delivering a negative return of 7.81% over the past five years. I think the future for Gorilla Glass looks bleak as advanced manufacturing technology (outlined in Apple's patents) are sure to close the only thing holding back true widespread use of sapphire in smartphone screens. I came across a very interesting note from MIT that relates to my thesis: "An alternative to using pure sapphire is to laminate an ultrathin layer of sapphire with another, cheaper transparent material, maintaining much of the performance advantage of sapphire at a cost comparable to that of the glass typical in mobile-phone displays." This is a game changer that will likely make Gorilla Glass obsolete in smartphone displays.

    Corning's future is in jeopardy and investors need to prepare for the possibility that the company might not be a part of future Apple or Samsung products. Looking at Corning's second quarter 10Q, the company stated that its division that makes Gorilla Glass, known as the Specialty Materials Segment, is heavily dependent on two large customers. These two customers, likely Apple and Samsung, combine for 35% of the department's total revenue. It goes without saying that if either Apple or Samsung (or both) part ways with Corning, the loss of revenue could be a significant loss for the company's bottom line.

    In regards to Corning using the sapphire screen as opposed to Gorilla Glass, the company commented in a press release in May 2013 that sapphire covers are two to three times thicker than Gorilla Glass and break more easily than Gorilla Glass in a commonly accepted strength test. Corning stated that the use of sapphire as a cover in high-end watches may have led to speculation on its use in mobile phones, but the watch covers are much smaller. "We do not see viable paths to offer these innovations in sapphire."

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    • Wow, your copy and paste abilities are outstanding. Considering the source ("Christopher Maverick" at seeking alpha) you might want to distance yourself from his comments or at least try to come up with something on your own. Otherwise, people are going to think you're a misinformed, short-sighted joke just like him. Even though he's written a whopping 5 articles, he's still managed to become one of the biggest laughing stocks on their board. A) No one, including Apple, has any idea if the laminate will work. Apple even admitted they are just "hedging their bet" in case that technology actually works but they have no plans to do anything in the near future. B) Corning and Samsung are partners and to suggests Samsung will stop using Corning glass would be like you owning a McDonalds and eating at Wendy's every day. C) True sapphire glass costs 10X as much as Gorilla glass, is much heavier, and is NOT more durable despite its claims. D) The brightness and resolution are significantly less in sapphire glass than Gorilla glass.

      Sentiment: Strong Buy

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