Corning Inc. ( GLW )
announced its plans to introduce two new products Gorilla Glass 3
and fiber-based Optical Cables at the International Consumer
Electronics Show (:CES) 2013.
These new products will demonstrate the company's leadership in
specialty glass and fiber optic technologies. Corning stated that
its new glass, Gorilla Glass 3, is incredibly strong and durable,
with the ability to protect the displays of millions of devices
around the world. Also, it is three times more resistant to
scratches and offers a 40% reduction in visible scratches.
Corning's Gorilla Glass is a key component in many tablets and
smartphones. The glass is used in LCD TVs, multi-touch displays for
education and many other applications. Robust U.S. demand for
big-screen televisions and the introduction of various new consumer
electronics products is increasing the demand for Gorilla
Many products like Google's ( GOOG )
Nexus 4 smartphone and Nexus 10 tablet feature Corning's Gorilla
Glass 2. Also, devices from Apple Inc. ( AAPL )
and Samsung Electronics Co., which use Corning's glass, are
witnessing higher demand from the Chinese market. Although none of
the manufacturers have confirmed the use of Gorilla Glass 3 in
their 2013 products, we expect Corning to make some announcements
soon, seeing the strong demand for Gorilla Glass 2.
According to research firm IDC, the tablet market is poised for
major growth in the coming years. The tablet market is expected to
grow at a compound annual growth rate (CAGR) of 23.3% from 2012 to
2016 with Apple's iOS taking the top spot with 49.7% market share
Thus, based on growth opportunities present in the tablet market
and the success of Gorilla Glass 2, Corning's Gorilla Glass 3 is
likely to witness strong demand going forward.
Recently, the company provided an improved glass outlook for the
fourth quarter, indicating higher global demand for cover glass
used in tablet computers and LCD TVs. However, the downward
pressure on glass prices is expected to continue, which might
impact results in the fourth quarter and beyond.
Corning is primarily a developer of advanced glass substrates
for multiple markets. The company's third quarter earnings beat the
Zacks Consensus Estimate by 2 cents or 7.1%. Revenues of $2.04
billion were up 6.8% sequentially but down 1.8% from the year-ago
However, excess capacity in the market place, price pressure and
competition remain challenges for Corning's glass business.
Currently, Corning has a Zacks #3 Rank (Hold).APPLE INC (AAPL): Free Stock Analysis ReportCORNING INC (GLW): Free Stock Analysis ReportGOOGLE INC-CL A (GOOG): Free Stock Analysis
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