In a brand new note today seen by Apple Terminal, Apple analysts Ming-Chi Kuo shines some light on the current status of the iPhone 12.
Kuo says that the low-end 7P wide-angle lens for the iPhone 12 has encountered issues with coating during the PVT or product verification testing. The lens, supplied by Yujingguang was found to have cracked under high temperatures and high humidity,.
Kuo says that he believes Yujingguang will “eventually” be able to solve the issue with the cracking, but adds that the current issues are cutting into its production and execution capabilities, saying it is “unstable.” Due to the lower production and capacity, Largan’s 7P wide-angle lens has received more shipment orders.
Ultimately, if Yujingguang is unable to solve the issue, Kuo says Apple will place a higher priority on Largan’s CCM or camera module system at least in the initial stages of production in order to ensure that the two bases iPhone 12 models can be shipped on time. Currently, Kuo says that the 5.4-inch iPhone will begin final assembly and mass production in mid-to-late September and the 6.1-inch model in early October.
If Yujingguang is able to solve the issue, it will sill present long-term issues for the supplier leading it to possibly having to reduce the price of its lens to meet quality demands. In specifics, Kuo says that Yujingguang will need to bargain around 30% of its cost down to $1.5 USD vs. the current $2-$2.2 USD per unit to meet stay afloat.