But, it took decades for the basic idea to become commonplace.

In the early 20th century, inventors tinkered with a variety of low-resolution electromechanical displays. The FCC even granted experimental broadcast licenses for early TV broadcasts using these sets.

Yet by the mid 1930s, the broadcasts had ceased.

It would take a superior technology to make television practical for the masses.

In 1927, when Philo Farnsworth demonstrated his first prototype CRT display.  He was asked by an investor, “When are we going to see some dollars in this thing, Farnsworth?”

Farnsworth’s response was to broadcast a dollar sign to his new device.

Still, others did see the potential value in this breakthrough technology.

For example, RCA spent millions of dollars developing television. It licensed patents from Farnsworth.

While Farnsworth’s invention contained the seeds for commercializing TV – the world would have to wait until the end of World War II for it to become a reality.

Of course, television turned out to be enormous. Today, the average American household has more than 2 TV sets.

Television became one of the most rapidly diffused technologies in history. And… made for some very happy early investors.

For example: In the 1930s, investors could purchase shares of RCA for $2. By 1964, RCA was over $90 share!

The venerable CRT screen is a dying technology these days. Plasma displays were a disruptive technology that began to displace them in the 1990s. Plasma displays were far less bulky. They were also easier to build in larger screen sizes.

But then another technology came along. Plasma sales were then stomped by liquid crystal displays (LCDs).  They are even lighter. And they burn up less power than plasma displays.

But now there is a new wave of display technology. Displays using this technology are thinner, lighter, and use less energy than LCD screens.

They are also brighter and have a wider field of view than the current LCD standard.

And… they are inherently more durable, have faster refresh rates, and higher contrasts.

Like the original CRT technology in the 1930s, this new technology has had an uneven journey on its way to large market acceptance.

However, I believe it is now at the cusp of becoming widespread.

The technology I am talking about is the organic light-emitting diode (OLED) display.

First developed by Kodak in 1987, OLEDs are a revolutionary display technology. OLEDs use organic (carbon-based) thin films sandwiched between conductive layers. When an electric current is applied across the organic film, it emits light.

Since the individual display elements in OLED screens emit light, they do not need a separate lighting source like LCD screens do.

Getting rid of the need for a separate light makes OLED displays very energy efficient and thin. It also makes OLEDs an energy-efficient technology for other applications, like lighting.

OLED displays are already becoming widespread in mobile phones. They have become standard in higher-end Samsung phones. It is also rumored that the next iPhone will contain this technology. Phones by Google, Verizon and Nokia are starting to feature, or will soon feature, OLED screens.

Television and smartphones aren’t the only growth story. Tablets are still new products and are expected to grow. Samsung has already shown an OLED-screened tablet.

Although we’ve seen OLED technology gradually adopted over the last few years… double-digit growth in OLED display technology is forecast for years to come. OLED lighting could become a multibillion-dollar industry in the next few years!

This is one industry you want to keep a close eye on.

[The Sleuth’s Note: There are many ways you can get in on this disruptive display technology right now. Doing a quick search using Google Finance we were able to find a few companies to get you started: AU Optronics Corp. (NYSE:AUO), eMagin Corporation (AMEX:EMAN), and Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC). Before you invest in anything, make sure to do your research.]

Sincerely,

Ray Blanco
Penny Sleuth

Ready to Break Out: Profit Opportunity in Display Technology was originally featured in the Penny Sleuth.

I’m talking about organic light-emitting diodes, or OLEDs. OLED displays are taking off in a big way. These next-generation displays are perfect for the mobile phone and personal media device markets because they are thinner than traditional displays and produce sharper images.

OLED — and active-matrix OLED — technology has now reached its tipping point. Very soon, we will begin to see OLEDs used in a vast array of electronics, including small televisions, digital cameras, netbooks, phones — the list goes on and on.

The rise of the OLED display is similar to that of the flat-panel television. Once a novelty, flat-panel LCD and plasma televisions quickly became the industry standard as quality and production increased while prices fell. The “transition” from bulky tube televisions to sleek flat-panel displays took only a few short years.

Try walking into your neighborhood electronics store today to browse the tube television selection. Be warned: You will be disappointed. Only a few models remain, and you can easily purchase a comparable flat-panel television for about the same price. And a flat panel can actually save you money, since it uses less power than a standard TV. Yes, it seems that the tube television is going the way of the VCR. It won’t be long before they’re only available at yard sales and antique stores.

OLED Growth: The Story Is in the Numbers

Experts from world mobile display sector leader Samsung Mobile Display are banking on OLED screen use in mobile phones to “grow significantly.” And with overall smartphone use also growing dramatically, we have before us a unique opportunity in the OLED market.

The Samsung venture expects the global smartphone market to grow to 500 million units by 2012, making up almost 30% of the industry. To put this in perspective, consumers are using 170 million smartphones right now.

Better phone technology means better displays. Samsung predicts OLED screens will be used in half of these new phones over the next five years. That’s hundreds of millions of units…

Overall, the OLED display market will grow to $6.2 billion, according to DisplaySearch forecasts. Last year, the total OLED market was worth an estimated $600,000. As you can see, we are looking at exponential growth, with the mobile phone market leading the charge.

As the technology continues to improve, we will begin to see even larger OLED displays. LG Electronics and Sony are each planning on releasing 15-inch and bigger OLED display televisions by the end of this year, according to DisplaySearch, with OLED netbooks and larger televisions showing up by the end of 2010.

Obviously, LG and Samsung are the big players in this market. But there are a couple of small-caps that have also found success developing OLED technologies. A good place to start looking would be Universal Display Corp. (NASDAQ: PANL). While the company is not yet profitable, it does have a promising patent portfolio that includes phosphorescent OLED technology.

Best,
Greg Guenthner

October 1, 2009

OLED: The Next High-Tech Profit Opportunity was originally featured in the Penny Sleuth.