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UBS Dismisses iPad Concerns on Corning Glass Warning

Post Time:Dec 01,2011Classify:Industry NewsView:360


At issue was a warning from Corning on Tuesday that the company was cutting its estimates for its Gorilla Glass business. The company said that rather than seeing a 15% decline quarter over quarter, it was now expecting a 25% decline. The firm blamed less-than-expected demand for tablet glass, a comment that lead many to wonder if Apple’s iPad demand was slacking.


Apple uses Gorilla Glass on its iPhone and iPad products, and according to Walter Isaacson’s


Maynard Um told clients in a research note obtained by The Mac Observer that, “[Corning’s warning is] likely more related to weaker non-iPad demand,” and that anything related to Apple is to a “lesser degree.”


He noted that while Apple accounted for as much as 80% of Corning’s Gorilla Glass business in 2010, that has since shrunk to about 50% as Corning brought on new customers. He said the company may have ramped up production of the material, as well, though the research note was rather unspecific on these factors.


The biggest element of Mr. Um’s research note, however, is that he was already taking a conservative stance on Apple’s December iPad shipments. He estimated 12 million iPads during the quarter in part because of Apple’s less-than-expected iPad shipments in the September quarter.

“Given our view that the consumer wallet has not grown materially and if a consumer could not buy all iProducts simultaneously, perhaps there was a shift back in preference to a more traditional form factor with greater functionality (MacBooks were stronger than expected in the September quarter),” the analyst told clients.

Source: www.macobserver.comAuthor: shangyi

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