Set to Skyrocket: Buy This Stock

Piyush is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

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 (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 (NASDAQ: AAPL). Their Galaxy S3 and iPhone 4S had set the bar, and companies like Nokia (NYSE: NOK) and Blackberry (NASDAQ: BBRY) 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  (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!

A new opportunity?

At the end of 2012, we also saw a wide range of ultra-books being launched, with touchscreen displays with Windows 8 pre-installed. Naturally, to avoid unwanted scratches, these displays are equipped with Gorilla Glass. Their sales are expected to kick up, once the PC manufacturers hit the sweet spot of price-to-performance. However one should note that touchscreen displays are not just limited to ultra-books. Desktop offerings from HP and Lenovo come equipped with touch sensitive displays as a standard feature.

Foolish conclusion

Lately, we have seen a wide range of launches. This ensures that solid growth of the smartphone industry will continue in 2013 as well. Additionally the touch screen ultrabooks and cheaper iPad’s also present bullish prospects for Corning’s Gorilla Glass. In 2013, we could also expect Apple to announce the launch of its touch sensitive range of desktops and laptops. In my opinion, Corning is a great stock to hold.


PiyushArora has no position in any stocks mentioned. The Motley Fool recommends Apple and Corning. The Motley Fool owns shares of Apple, Corning, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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