Apple Inc. AAPL is widely expected to upgrade the iPhone 14's front camera from the existing fixed-focus to auto-focus. Noted Apple analyst Ming-Chi Kuo sees a slew of supply chain partners benefiting from this planned camera upgrade.
Improved Factors: The TFI International Securities analyst sees the transition to significantly improve selfie and video performance. The hardware upgrades needed for this include adding a voice coil motor and upgrading from a 5P lens to 6P lens, the analyst said.
Kuo's List: Kuo sees Genius and Cowell as the biggest beneficiaries of Apple's front camera upgrade to auto-focus. Genius, according to the analyst, is the main supplier of the 6P lens, whose average selling price of the lens is about 20% higher than 5P.
For the first time, Genius' share of iPhone lens supply will exceed Largan's, the analyst said.
Cowell, which makes the CMOS Camera Module (CCM), will benefit from the vertical integration of CCM and VCM.
China's Luxshare ICT, which has a stake in Cowell, is the new VCM supplier for the iPhone front camera.
Kuo sees Cowell having more upside versus peers in the coming years due to iPhone rear-camera orders.
For Apple's AF camera, Sony Group Corp SONY will supply CMOS image sensors, while Genius and Largan will supply lenses.
Alps and Luxshare ICT will provide VCM and LG Innotek and Cowell will supply CCM, the analyst said.
Price Action: Apple closed Monday's session 3,83% lower at $131.88, according to Benzinga Pro data.
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