Tue, Sep 27, 2016 - Page 12 News List

E Ink shares rally in Taipei on Apple rumor

By Lisa Wang  /  Staff reporter

Shares of E Ink Holdings Co (元太科技) yesterday rallied to an almost four-year high on speculation that Apple Inc might introduce a dual screen in its next iPhone model using E Ink’s energy-efficient e-paper displays.

The stock price of E Ink surged 3.62 percent to NT$24.35 yesterday, retreating from an early gain of 5.53 percent. The closing price was the highest since Nov. 2, 2012. Turnover was the largest in a month at 34.74 million shares.

The stock outperformed the TPEX, which fell 0.5 percent yesterday.

E Ink supplies e-paper displays primarily to e-reader vendors such as Sony Corp and Amazon.com.

The rally in E Ink’s stock price was prompted by a report by the Economic Daily News that Apple has requested E Ink to send products for sampling and certification after Yota Devices’ dual-screen YotaPhone 2 impressed the US consumer electronics giant.

“We are aggressively exploring business opportunities to use our e-paper displays as secondary screens on mobile phones,” an E Ink public relations official said by telephone yesterday.

The official declined to comment on information on any single customer.

China’s Siswoo earlier this year also unveiled a dual-screen phone, the R9 Darkmoon, equipped with a standard smartphone display and a secondary screen on the back. The secondary screen is a 4.7-inch grayscale e-paper display produced by E Ink, which is energy-saving and can handle texts, e-mails and other functions.

In a separate statement, E Ink said it plans to streamline the operations of a less advanced 2.5-generation LCD factory in Hsinchu, which is a further move to exit the volatile LCD market.

Earlier this year, E Ink shut down its South Korean LCD manufacturing subsidiary Hydis Technologies Co Ltd in an effort to stem losses from LCD panels.

E Ink plans to transform the 2.5-generation production line into a research and development line for developing new e-paper displays, the company said.

About 70 percent, or 190 out of 286 employees working at the plant would be affected by the adjustment, E Ink said.

The company would pay higher severance fees for those employees affected than stipulated by the Labor Standards Act (勞基法) and it will also help them find new jobs.

E Ink generates about 70 percent of its revenue from selling e-paper displays used in e-books, which delivers a higher gross margin than LCD panels, the company said.

E-paper displays for luggage tags, supermarket goods shelves, wearable devices, phones and LCD panels make up the remaining 30 percent, the company said.

This story has been viewed 4055 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top