In his 2nd note right before Apple’s “Hi, Speed” event, Apple analysts Ming-Chi Kuo doesn’t directly shine light on what Apple has planned for us on Tuesday but instead talks about Apple suppliers.
In a heavily supplier-focused note, Kuo says that Yujingguang has faced issues with the mass production of Apple device lenses. Despite that, the supplier’s revenue and growth have been substantial in 2019 and 2020. This being due to the improvement of its technology, and its increased share of high-end iPhone lens shipments. Kuo also says he believes that Yujingguang has seen growth due to the fact that Apple began designing its own lens in-house around 3 years ago.
Two other suppliers, Sunny Optical and Semco are also expected to face new orders, and as a result, increased market share. ODM or original design manufacturer shipments of Apple lenses will drop from around 30-40 in 2021 to less than 10% in 2021. The shift for Sunny and Semco obtaining new orders will result in pressure being placed on Largan, another supplier, and Yujingguang to reduce their price.
As for specific devices, Kuo says that Sunny Optical will begin to ship the 2021 iPhone’s 7P lens in the 2nd half of the year, and new 5P lens for a new iPad in Q1 of 2021. While Sunny will get the largest number of orders for the 2021 iPhone and iPad, Semco is still expected to see an increase in market share due to the new telephoto lens of the iPhone in 2022.