Dual camera smartphones giving Korean suppliers a boost
Back in November of last year, we noted that Apple (AAPL) had chosen three South Korean companies to supply the flexible PCB boards for the iPhone 8(aka iPhone X), beating out Taiwanese and Japanese rivals. The three companies mentioned, Interflex (051370.KS), BHE (090460.KS) and Samsung Electro-Mechanical (009150.KS), were, in theory, chosen for their expertise and cost structure, but hints that their experience in the OLED space for Samsung (005930.KS) and LG (066570.KS) might have helped them win the business.
Now it seems that Samsung Electro-Mechanical and LG Innotek have been selected to supply dual camera systems for LG Electronics, Samsung Electronics, LeEco (pvt), and are in talks with a number of Chinese brands that are interested in developing dual camera phones. While Samsung Electro-Mechanical saw a loss in the 4th quarter due to the Note 7 recall, it has been supplying dual camera systems to Xiaomi (pvt) and LeEco since 3Q 2016, and as mentioned above, is in talks to supply similar product to Huawei, Oppo and other Chinese smartphone vendors, and expectations are for 2017 sales to double in 2017.
LG InnoTek, who was the 1st dual camera system supplier back in 2011, has been supplying Apple since 3Q 2016, and has posted record results in 4Q 2016, also driven by LG’s G6 smartphone pre-release production. Overall, estimates for dual camera smartphones come in between 250m and 350m units for 2017, and with such high visibility devices being produced by the two South Korean companies, they both should see significant incremental sales in 2017, as the concept of improved rear camera capabilities becomes a marketing tool for high-end smartphones going forward.
Now it seems that Samsung Electro-Mechanical and LG Innotek have been selected to supply dual camera systems for LG Electronics, Samsung Electronics, LeEco (pvt), and are in talks with a number of Chinese brands that are interested in developing dual camera phones. While Samsung Electro-Mechanical saw a loss in the 4th quarter due to the Note 7 recall, it has been supplying dual camera systems to Xiaomi (pvt) and LeEco since 3Q 2016, and as mentioned above, is in talks to supply similar product to Huawei, Oppo and other Chinese smartphone vendors, and expectations are for 2017 sales to double in 2017.
LG InnoTek, who was the 1st dual camera system supplier back in 2011, has been supplying Apple since 3Q 2016, and has posted record results in 4Q 2016, also driven by LG’s G6 smartphone pre-release production. Overall, estimates for dual camera smartphones come in between 250m and 350m units for 2017, and with such high visibility devices being produced by the two South Korean companies, they both should see significant incremental sales in 2017, as the concept of improved rear camera capabilities becomes a marketing tool for high-end smartphones going forward.
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