Apple is planning to equip both the iPhone 16 Pro and iPhone 16 Pro Max with a tetraprism (periscope) camera lens, according to a new report from TF International Securities analyst Ming-Chi Kuo.
In a late night post, Kuo says that Largan, the main supplier of these lenses, has made significant improvements in the yield of the tetraprism lens assembly for the iPhone 15 Pro Max.
Largan is the exclusive supplier of the tetraprism (periscope) camera lens for the iPhone 15 Pro Max. Apple's urgent spec upgrades led to a production yield of only about 40% in 3Q23, resulting in negative gross margins and dragging down 3Q23 EPS. However, my latest survey indicates that Largan has now improved the yield to 70% or more significantly, making the tetraprism lens assembly profitable and materially accretive to EPS in 4Q23.
Kuo expects Apple will bring the tetraprism camera to the iPhone 16 Pro model in 2024, but leave it exclusive to the Pro models. This will lead to 160% YoY growth in iPhones that have the camera next year.
Largan is expected to provide Apple with 85-90% of its periscope lenses and Huawei with 50-60% of its periscope lenses in 2024. During this period, total orders are said to increase 130%, resulting in higher profitability than current market consensus.
Other improvements rumored for the iPhone 16 Pro include a new graphene thermal system which will help with overheating issues. As part of this change, Apple is purportedly switching to a new batter with a metal shell. Check out that here.
You can download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for iPhone 16 updates.
In a late night post, Kuo says that Largan, the main supplier of these lenses, has made significant improvements in the yield of the tetraprism lens assembly for the iPhone 15 Pro Max.
Largan is the exclusive supplier of the tetraprism (periscope) camera lens for the iPhone 15 Pro Max. Apple's urgent spec upgrades led to a production yield of only about 40% in 3Q23, resulting in negative gross margins and dragging down 3Q23 EPS. However, my latest survey indicates that Largan has now improved the yield to 70% or more significantly, making the tetraprism lens assembly profitable and materially accretive to EPS in 4Q23.
Kuo expects Apple will bring the tetraprism camera to the iPhone 16 Pro model in 2024, but leave it exclusive to the Pro models. This will lead to 160% YoY growth in iPhones that have the camera next year.
Largan is expected to provide Apple with 85-90% of its periscope lenses and Huawei with 50-60% of its periscope lenses in 2024. During this period, total orders are said to increase 130%, resulting in higher profitability than current market consensus.
Other improvements rumored for the iPhone 16 Pro include a new graphene thermal system which will help with overheating issues. As part of this change, Apple is purportedly switching to a new batter with a metal shell. Check out that here.
You can download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for iPhone 16 updates.