Universal Display Corporation (OLED 1.65%) makes millions selling phosphorescent OLED materials to Samsung (NASDAQOTH: SSNLF), but could that revenue stream be in trouble?
That's what a report this week from The Korea Herald seems to indicate. Specifically, the report states Samsung affiliate Cheil Industries has announced it will mass-produce a green host material for the phosphorescent OLED displays used in Samsung's mobile devices. By sourcing more materials locally, Samsung would be able to reduce production costs of those devices.
It should come as no surprise, then, that shares of Universal Display promptly fell 10% on the news. After all, Samsung is the OLED technologist's single largest customer and green host sales comprised more than a third of Universal Display's total material sales last quarter.
The Fool's Steve Symington thinks that this could quite possibly be bad news for Universal Display. However, he says, there are also a number of reasons to believe Samsung Cheil industries might not be the threat investors fear. For Steve's take on how this news might affect both Universal Display and its investors, check out the video below.
