In a recent article on Medium, TF International Securities analyst Ming-Chi Kuo has highlighted a critical bottleneck in the production of Apple’s flagship iPhone 15 Pro Max.
According to Kuo, this bottleneck centers around the tetraprism compact camera module (CCM), an essential component exclusively provided by LGIT.
To tackle the CCM production challenges caused by assembly tolerances, Apple has taken urgent measures by enhancing the specifications of the tetraprism lens supplied exclusively by Largan. This move aims to boost the production yield of CCM.
Largan, recognizing the sudden increase in lens requirements and the pressing demand for shipment volumes, has responded by rapidly expanding its production lines dedicated to the tetraprism lens.
This expansion comes with a significant consequence – a more than 20% surge in the unit price of the tetraprism lens. It is also expected to substantially bolster Largan’s revenue and profit margins.
Apple’s decision to increase the lens cost serves not only to address the relatively lower cost of defective lenses but also to leverage Largan’s exceptional production capabilities, which are crucial in meeting the company’s immediate needs.
Kuo further notes that both the iPhone 16 Pro Max and the iPhone 16 Pro are anticipated to incorporate tetraprism telephoto cameras next year.
Should Apple maintain the heightened specifications for the lens, it may present a formidable challenge to Genius, Apple’s second-largest lens supplier.
This development also suggests that Largan is likely to retain its exclusive or primary supplier status for the tetraprism lens in the coming year.
