iPhone 15 Pro

iPhone 15 adopts periscope camera, Apple camera supplier enters a period of rapid growth

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Tianfeng Securities analyst Ming-Chi Kuo said that because the iPhone 15 uses a high-priced periscope camera design, Apple’s existing camera supply chain will enter a two-year high-speed growth cycle. The full text is as follows:

Apple’s camera supply chain will enter a two-year high-speed growth cycle due to the iPhone 15’s high-unit price periscope design. Here are my latest surveys and predictions for the iPhone’s periscope design:

1. Conclusion: The main beneficiaries of iPhone adoption of periscope are:

  • LG Innotek (VCM & CCM): CCM supplier with a high unit price and benefit from vertical integration into VCM/Sensor shift supply.
  • Cowell Electronics (CCM): a high unit price CCM supplier, with a large room for future growth due to its low base period.
  • Jahwa (VCM): A new supplier of iPhone, benefiting from high unit price VCM (supporting Sensor shift).
  • Largan (Lens): Due to its technological advantages, it is the exclusive or main supplier of lens modules with high unit prices in the initial stage.
  • Lante Optics (Jihan): Due to its technological advantages, it is the exclusive or main supplier of JHJ with a high unit price in the initial stage.

2. The telephoto camera of the iPhone will use a periscope design from 2023. The periscope models used are:

  • 2H23 new iPhone: iPhone 15 Pro Max.
  • New iPhones in 2H24: iPhone 16 Pro Max and iPhone 16 Pro.
  • The main specifications of the iPhone 15 and iPhone 16 periscope are similar, including 1/3″ 12MP, f/2.8, support for Sensor shift, and 5–6x optical zoom.

3. At present, the cost of components still depends on the yield rate before mass production. If the cost of the existing periscope is used as the basis, it will benefit from the use of the periscope in the iPhone 15 Pro Max, and the components of the rear camera of the new iPhone (iPhone 15 series) in 2H23. The total output value of CIS, VCM, lens and CCM will grow YoY by 5–10%, 20–25%, 65–70% and 20–25%, respectively.

4. Benefiting from more iPhone 16 models adopting periscope and other rear camera upgrades, the total output value of the rear camera components of the new iPhone (iPhone 16 series) in 2H24, including CIS, VCM, lens and CCM, will grow YoY respectively 15–20%, 15–20%, 40–45% and 15–20%.

5. Jihan is the first component used by Apple/iPhone, and it is the most noteworthy focus in the periscope supply chain. It is estimated that the YoY growth of the output value of the iPhone will be significantly increased by about 150-200% in 2024. Each periscope camera uses 2 elements, which reflect light and create a longer light path for optical zoom.

6. Among all components, lens specifications and business models have changed the most, and the output value has grown the most. The complete periscope lens module includes a high unit price 1G2P lens, two high unit price lenses and a lens barrel. High unit price materials are the key to boosting production value. Apple’s lens supplier will provide more complex assembly services for the first time, so Largan and Yujingguang expanded their production in Taichung and Xiamen respectively to meet this order.

  • The unit price of G (glass lens) is significantly higher than that of P (plastic lens).
  • The lens supplier must assemble the lens with a high unit price lens and ship it to CCM.
  • The ASP of the periscope lens module maybe $10–15 (USD) (vs. the ASP of the existing high-end 7P lens is about $1.5–2).

7. The unit price of CCM is very high. If the initial yield is not good, the unit price may even be as high as $60–70 (USD). As LG Innotek becomes a VCM/Sensor shift supplier, it is expected to improve assembly yield and profit through vertical integration. If the periscope CCM yield of the iPhone 15 Pro Max can be significantly improved during the shipping cycle, the chances of Cowell Electronics becoming the iPhone 16 periscope CCM supplier will increase significantly and will benefit significantly from this high unit price order.

8. iPhone 15 Pro Max periscope supply chain:

  • CIS: Sony
  • Lens: Largan (main or exclusive), Yujingguang (secondary)
  • Jinghan: Lante Optics (main or exclusive), Crystal Optoelectronics (secondary supply)
  • VCM: LG Innotek (main), Jahwa (secondary)
  • CCM: LG Innotek

9. iPhone 16 Pro Max & iPhone 16 Pro Periscope Supply Chain

  • CIS: Sony
  • Lens: Largan Light (main), Jade Crystal Light (secondary supply)
  • Jinghan: Lante Optics (main), Crystal Optoelectronics (secondary)
  • VCM: LG Innotek (main), Jahwa (secondary)
  • CCM: LG Innotek (main), Cowell Electronics (secondary)

10. Part of the consensus in the market expects Sunny Optical to benefit from the adoption of periscopes for the iPhone, however, my survey indicates that Sunny Optical still has no visibility for lens or CCM orders.

11. If the market feedback on the iPhone’s use of periscope is good, Chinese Android brands may follow suit. Potential suppliers include Semco, Largan, Sunny Optical, Lantech Optical, and Crystal Optoelectronics.

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