According to Ming-Chi Kuo’s latest report, based on a latest industry survey, Sunny Optical is expected to pass the quality verification of the iPhone 13’s 7P wide-angle lens and receive orders. This iPhone is expected to ship in the second quarter of 2021.
He also pointed out that since the iPhone 13 mini, 13, and 13 Pro all use the same F1.6 7P wide-angle lens (while the 13 Pro Max uses an F1.5 7P wide-angle lens), the orders Sunny Optical receives are for the most demanding projects. Sunny Optical will start delivering 7P wide-angle lenses for the iPhone 13 series to LG Innotek in May.
Ming-Chi Kuo pointed out that the order volume for 7P lenses from Sunny Optical in the second half of 2021 was still not large, but it has already put price pressure on existing suppliers. We expect the price pressure to be more significant from the fourth quarter of 2021 through 2022. Since Genius Electronic Optical has a lower yield rate than Largan Precision, its price reductions under competitive pressure are much greater than Largan Precision’s. Although Kantatsu has exited Apple’s lens supply chain, the addition of Sunny Optical is expected to reduce the risk and cost of supplying lenses to Apple.
Ming-Chi Kuo also stated that if Sunny Optical successfully delivers lenses for iPhone and iPad in the second half of 2021, it is expected to strengthen its cooperation with Apple and expand its production capacity. Sunny Optical’s lens shipments to Apple are expected to grow significantly over the next three years. As Apple plans to launch several new products in the future (such as AR/VR headsets and Apple cars), the demand for optical lenses will increase substantially, and Sunny Optical is likely to become a major beneficiary.