…And Then There Were Three…
As we have noted, Apple is picky about companies in their supply chain and those that want to join. Whenever possible they try to maintain 3 to 4 suppliers for each component, in order to make sure supply will not be interrupted in the event of a catastrophe with one supplier. Such a situation occurre4d in late 2021 when Sharp’s (6753.JP) camera module factory in Ho Chi Minh City was closed due to COVID quarantines. At the time, Sharp’s component inventory for the iPhone 13, which was being assembled for its 9/24 release, were moved to LG Innotek’s (011070.KS) in Hai Phong, which remained open. Since then LG Innotek has maintained a ~70% share of Apple’s iPhone camera module supply, with Sharp the #2 supplier, with Foxconn (2354.TT) and Cowell Optics (1415.HK) the smaller suppliers. In 2021 Apple removed China’s O-Film (002456.CH) from its supplier list after it was accused of using forced Uygur labor and put on the US entities list in July of that year (since removed).
Apple spends roughly two years working with suppliers to prepare for a new iPhone release and Sharp did not participate in the iPhone 2016 program, so it is assumed that they will not be involved in the iPhone 16 release in 2024, with LG Innotek likely to pick up much of the slack as they have expertise in ToF, which is being added to the iPad and folded zoom modules, which will be added to the iPhone 15 Pro Max this year. A folded zoom lens uses prisms to bend light before it enters the lenses, allowing them to be placed horizontally, rather than stacked from front to back. This allows the camera module to be thinner, but it also requires an image stabilizing actuator, which will also be supplied by LG Innotek and Jahwa Electronics (033240.KS), also a supplier to Samsung.
Apple spends roughly two years working with suppliers to prepare for a new iPhone release and Sharp did not participate in the iPhone 2016 program, so it is assumed that they will not be involved in the iPhone 16 release in 2024, with LG Innotek likely to pick up much of the slack as they have expertise in ToF, which is being added to the iPad and folded zoom modules, which will be added to the iPhone 15 Pro Max this year. A folded zoom lens uses prisms to bend light before it enters the lenses, allowing them to be placed horizontally, rather than stacked from front to back. This allows the camera module to be thinner, but it also requires an image stabilizing actuator, which will also be supplied by LG Innotek and Jahwa Electronics (033240.KS), also a supplier to Samsung.
Folded lens system - Source: Apple
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