Corning (NYSE:GLW) is looking at innovation as its way out of recent troubles. The depreciating glass prices due to oversupply in the market resulted in disappointing fourth quarter earnings for the company. However, Corning showed optimism on its new product development efforts. Its new Gorilla Glass has become the industry wide standard for damage resistant touch sensitive cover glass for consumer electronics products. The company also recently released the next generation version of this glass, which is sleeker, slimmer and provides brighter images with better touch sensitivity. Now, the company has come up with a new ultra-bendable optical fiber, which is designed to support emerging high-speed data transfers between computers and other consumer electric devices.
This new optical fiber, dubbed ClearCurve VSDN optical fiber, is the latest in Corning’s ClearCurve family of bend insensitive fibers. It has the ability to handle intermittent bends down to 1.5 mm in radius while exhibiting ultra-low bending loss and superior mechanical reliability.
- Why Optical Communications Business Is Most Critical For Corning’s Growth?
- Corning Q2 Earnings: Solid performance in Q2 is likely to build momentum for the 2nd half of 2016
- Corning Q2 2016 Earning to remain depressed but sales may increase sequentially
- Corning: What To Expect From Q4 2015 Earnings
- Corning Earnings: Optical Communications Segment To Drive Sales, Positive Outlook For Specialty Materials Segment
- Corning Earnings: Optical Communications Offsets Declines Across Other Segments
The optical fiber also has a larger core size and higher numerical aperture, enabling low-cost connectivity which is essential for consumer applications. This also helps the fiber handle bandwidth needs of consumer electronics applications above 10 Gb/s. Corning believes consumers can enjoy higher connection speeds with this product while device makers will benefit from its lighter, more robust connectivity and greater design flexibility leading to lower cost solutions.
We think that this product has great potential to become a success in the marketplace. As consumers get hungrier for more bandwidth and as Internet consumption starts migrating in some part from computers to mobile phones, this new optical fiber can provide a much needed link between the two. Telecommunication accounts for nearly 3.9% of Corning’s stock value, out of which 1.1% comes from optical fiber and cables.