OLED is an emissive display technology - it means that the OLED materials emit light. This is in contrast to a reflective display - which uses an external light source - an ePaper display for example, or a 'real' paper. OLEDs are bright, and provide great image quality, but because they are emissive, when viewed under direct sunlight (or any strong light source) they have a readability problem.
The best display technology for direct sunlight (besides ePaper) is said to be transflective LCDs, which uses a reflective layer under the LCD's filter. However this reduces the transmissive capabilities of the LCD, and the contrast is compromised as well. With OLEDs, unfortunately, it's not possible to use a reflective layer as the OLEDs themselves emit light.
We have received some word from Nokia N85 users saying that the display is not readable in sunlight - it behaves very poorly. It seems this issue is widespread. Check out this photo for example, showing a prototype N85 outside:
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