Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



2 Winners From Samsung's Galaxy S4

South Korean heavyweight Samsung has now taken the wraps off of its latest and greatest flagship smartphone, the Galaxy S4. Leading up to the event, there was a steady stream of rumors and supply chain leaks as to what the company might have up its sleeve for the follow up to its popular Galaxy S III device.

From the perspective of smartphone component suppliers, higher volumes mean scoring a design win in the device can be quite a boon for the top line. The previous Galaxy S III was the No. 3 smartphone in the world in the fourth quarter, and the new model has potential to fetch similarly high volumes. Two of the more important possible suppliers heading into the unveiling were Qualcomm (NASDAQ: QCOM  ) and Universal Display (NASDAQ: OLED  ) .

Expectedly, Qualcomm scored some of the processor win with its Snapdragon processors. Samsung targets a wide range of carriers and geographies and tailors different variants to different regions. Since Qualcomm has huge advantages in LTE integration, Snapdragons will be found in the U.S. variants, since LTE is a requisite feature of any high-end flagship hoping to compete domestically. In other parts of the world that are still primarily on 3G, Samsung is using its own Exynos 5 Octa chips.

Samsung Galaxy S4 with AMOLED display. Source: Samsung.

On the display front, Samsung has put a full 1,080p HD resolution into the 5-inch display. There was speculation that the company was having trouble manufacturing OLED displays of this caliber and would switch to a different display technology, even though the company has been one of the biggest proponents of OLED technology. Fortunately for Universal Display investors, Samsung has gone with an AMOLED display in the Galaxy S4, which will boost UDC's material sales.

If the Galaxy S4 does as well as the previous generation, these suppliers will hitch a ride to the upside.

Universal Display has a powerful patent portfolio behind OLEDs, a technology poised to dominate the displays of the future. Its placement at the center of OLEDs makes the company an underappreciated way to play the enormous sales growth in tablets and smartphones. However, like any new technology, there are plenty of risks to Universal Display. I've written a new premium report that dives into reasons to buy the company as well as the challenges facing it. For access to this comprehensive report, simply click here now.

Read/Post Comments (0) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2317015, ~/Articles/ArticleHandler.aspx, 9/30/2016 4:18:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 7 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
OLED $55.26 Down -3.23 -5.52%
Universal Display CAPS Rating: ****
QCOM $67.45 Up +4.00 +6.30%
Qualcomm CAPS Rating: ****