Cree lights might go into Apple laptops

Rumors are swirling among tech aficionados that Cree will light up the next generation of Apple MacBook laptops.

A relationship with Apple would be a big deal for Cree, giving the Durham company cachet within its industry and opening up a market with huge potential.

Updates of the MacBook Pro in the second quarter will use LEDs to create a more vibrant screen -- and Cree is expected to be Apple's supplier, AppleInsider.com reported last week.

That follows a Jan. 3 mention by DigiTimes, a Taiwanese Web site that called Cree and rival Nichia the most likely candidates to backlight screens in Apple and Hewlett-Packard laptops.

Cree declined to comment on the rumors, but officials have made it clear that they are interested in laptop displays. In September, the company signed its first agreement to put its white LEDs in notebook computer screens made by Lite-On Technology of Taiwan.

Cree's tiny, energy-efficient devices have typically been used to light displays in cell phones, but the company's core business is suffering as heavy competition drives prices down. Cree recently reported its first quarterly sales drop in four years.

"You don't really have a growing opportunity in the handset market," said Michael Burton, an analyst with ThinkEquity Partners. "They need to transition toward these other end markets" such as LCD screens for laptops, computer monitors and eventually televisions.

LEDs are pricier than conventional fluorescent lights, so initially, they will be used in high-end, expensive products, Burton said.

Cree also is pushing into other lighting uses, including flashlights. In January, the company announced four deals with flashlight manufacturers to incorporate its LEDs into camping lanterns and other products with consumer, law enforcement and military uses.