Today, the latest research report issued by Ming-Chi Kuo stated that the market underestimates the impact of increased competition on Taiwan Genius Electronic Optical (GSEO). The report also believes that there will be no new iPhone SE in the first half of 2021.
The report believes that the main reason GSEO’s revenue in October fell short of market expectations was due to intensified competition between Largan Precision and Semco, which led to a decline in GSEO’s average lens selling price and lower-than-expected order volume. In 2021, GSEO will face increased competitive pressure, including a price war initiated by Taiwan’s Largan Precision, leveraging its production advantages, as well as order losses to competitors such as Largan, Semco, and Sunny Optical.
The report also mentioned that the market expects a new iPhone SE to be launched in the first half of 2021, which would boost GSEO’s shipments. However, this report believes that there will be no new iPhone SE released in the first half of 2021.
The report believes that the market has overestimated GSEO’s order volume for supplying ultra-wide-angle lenses for the new iPhone 13 in the second half of 2021. However, due to Largan’s aggressive bidding and vertical integration advantages in the VCM field, the report expects GSEO’s share of ultra-wide-angle lens orders to decrease from 50% for the iPhone 12 series to 30% for the iPhone 13 series.