Corning Incorporated (GLW), And What Apple Inc. (AAPL) Won’t Say

Investors start your engines

Like with the iPhone, Corning Incorporated (NYSE:GLW) has the opportunity to enter a market through incorporation in luxury models. According to a Bloomberg News article , BMW, with the i8, is just one of many companies like Volkswagen, Porsche, General Motors, and Honda that will all be looking to offer luxury models to compete with Tesla Motors in the rechargeable-auto market.

Gorilla Glass is a significant source of revenue for Corning, which contends that its 4% rise in revenue from $1.91 billion to $1.98 billion for Q2 2013 was largely attributable to high demand for the specialty glass. The company also noted: “Specialty Materials segment sales grew 17% sequentially to $301 million, driven by increased sales of Corning Gorilla Glass. Segment core earnings grew by approximately 33% over the previous year on strong Gorilla Glass manufacturing performance.”

Automakers’ adoption of Gorilla Glass in luxury cars is an interesting development in the specialty glass’s story. But by itself, it’s not a game-changer, just as it wasn’t when Gorilla Glass appeared in the iPhone. But if it proves to be the first step toward incorporation in many different kinds of cars and trucks, Corning will stand to benefit handsomely, as it has in the smartphone and tablet market.

I’ve been considering adding to my position in Corning Incorporated (NYSE:GLW) for some time, and now might be the time to do so. Corning had a good second quarter this year, with net income up 35% year over year, and a third straight quarter of EPS improvement, with 39% growth. At a P/E of 10.9 — well below its industry’s average valuation — Corning, at the moment, seems inexpensive and attractive.

The article 1 Big September Announcement Apple Won’t Make originally appeared on Fool.com and is written by Scott Levine.

Scott Levine owns shares of Corning. The Motley Fool recommends Apple and Corning. The Motley Fool owns shares of Apple and Corning.

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