The mobile phone market is expected to grow at a meager 1.4%, as compared to the last year, but there’s still a reason to cheer. Consumers around the world are shifting to smartphones and the smartphone industry is expected to expand by 45.1% in 2012 YoY. It should be noted that most smartphones come equipped with a gorilla glass display, developed by Corning Incorporated (NYSE:GLW), which protects the screen from unwanted scratches. Owing to the immense growth potential of its gorilla glass, I believe that Corning is set to rally, which will last for at least 2-3 years, and here are a few reasons to support the claim.
The reasons behind the rapid growth of the smartphone industry are the innovative and brilliant offerings from Samsung and Apple Inc. (NASDAQ:AAPL). Their Galaxy S3 and iPhone 4S had set the bar, and companies like Nokia Corporation (NYSE:NOK) and Blackberry had a tough time selling their cell phones.
Make it cheaper: The way to go
Samsung just announced that it had sold 100 million Galaxy S smartphones to date. Moreover Apple’s iPhone 5 sales are being expected between 35-40 million units, in just a quarter. The street was however expecting record sales of the iPhone 5, with sales up to 50 million units in a quarter, which obviously didn’t happen.
The tablet wars are also heating up. Apple recently launched its iPad mini with a lower screen size to compete with it cheaper rivals. According to rumors, Apple might also be launching cheaper iPhones to kick up its sales. Additionally, the launch of Samsung’s Galaxy S4 is expected in Q1. All these launches and innovations will only add to higher sales of Gorilla Glass.
The giant is back
In 2012, Nokia gained back its ground, with its “Lumia” smartphone sales coming in better than expected. The smartphones were released with Microsoft Corporation (NASDAQ:MSFT) Windows 7.5, which currently are being upgraded to Windows 7.8 (OTA) to unlock more features like Bluetooth FTP. Since Lumia series was well received by the market, Nokia has gone ahead to launch its new Lumia smartphones, which run on Windows 8 platform. The new Windows is not only fast, but from my experience it has the smoothest operating interface out there in the market.
The Black(berry) magic
Moreover the street is eagerly awaiting the launch of Blackberry’s OS 10, which would be installed in its touchscreen smartphones. The announcement is expected on Jan. 30. Whether Blackberry impresses the street or not would purely be speculation, but we can expect one thing from this:
The Touch sensitive smartphone industry will continue to expand, rapidly.
This is good for our focal company, Corning, as more devices would now be equipped with its Gorilla glass display. But that’s not all!