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 1H21.
The report believes that the main reason why GSEO’s revenue in October was lower than the market consensus was the intensified competition between Largan and Semco, which led to the decline of GSEO’s lens ASP and lower than expected orders. It is expected that in 2021, GSEO will face intensified competition, including price competition launched by Taiwan Largan Precision based on its production advantages, and loss of orders to Largan Precision, Semco, and the new supplier Sunny Optical.
The report also mentioned that the market expects a new iPhone SE in 1H21 (the first half of 2021) and boosts GSEO’s shipments. But this report believes that there will be no new iPhone SE in 1H21.
The report believes that the market overestimates GSEO’s 2H21 (second half of 2021) orders for the new iPhone 13 ultra-wide lens. However, due to Largan’s active bidding and vertical integration advantages with VCM, the report estimates that the proportion of orders for GSEO’s ultra-wide lens will drop from 50% of the iPhone 12 series to 30% of the iPhone 13 series.