There are two problems with taking this position too seriously. First, what else is Apple’s CEO going to say? “We really wish what we have were better, but the competition has made better choices and had more success”? As Apple dipped to $200 per share, Cook would be fired and become the subject of the largest shareholder lawsuit in the history of litigation. We expect our company CEOs to talk up their products. Just don’t take them too seriously as news.
The second, and more curious, reason to raise your eyebrows is that Apple seems to being doing some critical hiring in the OLED space. A recent story reported by the OLED Association explains that Apple recently hired Jueng Jil Lee, whose OLED experience is greater than that of anyone currently on Apple’s staff. Lee’s experience includes time at both LG Display and Cambridge Display Technology. The story is vague as to Lee’s specific role in the Apple ranks, but it strongly suggests that he will be involved in integrating OLED technology into Apple’s arsenal.
It’s obviously worth noting that the story comes from a source whose very purpose is the promotion of OLED technology. You would no more expect a negative report from this group than one panning Retina displays from Cook. Still, to the extent that the news is factual, it certainly places a different patina on Cook’s recent words. While rumors about the pending release of an iWatch from Apple abound, the company is badly in need of a game-changer.
While it’s unlikely that a fully flexible screen is on the immediate horizon, one of the innovations Samsung demonstrated at the CES was the functionality possible if an OLED screen is wrapped around the side of the device. Then, even with the phone upside down or with a cover on, a text message can be displayed on the side. There has been no confirmation that the technology will be included in the new Galaxy S IV when it is released, but the suggestion has been made.
This may not be actionable just yet from an investment perspective, but if Apple’s foray into OLED proves accurate, that is definitely bullish for the stock. Unlike Flash, OLED has the potential to change a great deal about the very nature of smartphones, and Apple can’t afford to be left behind. Watching for developments in the arena is a must for all Apple shareholders.
The article Is OLED Apple’s Next Flash Disaster? originally appeared on Fool.com and is written by Doug Ehrman.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Adobe Systems, Apple, and Goldman Sachs and owns shares of Apple.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
