LG Innotek said that Apple’s iPhone orders are expected to reach a record high in the fourth quarter of 2022, and there will be a surge in order inflows. Analysts pointed out that optical solutions will benefit from the surge in iPhone 14 orders in 4Q22 (30~40% increase in a single quarter), as Pro/Max share is expected to reach a record in 4Q22 85% (65% in 21Q4).
LG Innotek supplies parts for the Pro series, the flagship of the iPhone 14 series, which is expected to account for 58% of the first iPhone shipments (up 15% year-on-year). Analysts believe that the reasons for the increase in the share of high-end models include:
- The lack of global competitors for the iPhone in 2022-2023
- iPhone sales remained strong despite the global recession and inflationary pressures
LG Innotek 2H22 forecast: OP is 1 trillion won (up 25% year-on-year):
- The share of Pro Series bound orders is growing
- The upgrade of camera pixels drives the growth of ASP
- A new front camera is adopted
LG Innotek estimates 2H22 Optical Solutions revenue (80% of revenue for iPhones) at KRW 8.6 trillion (+46% HoH, +12% YoY), or 59% of the segment's full-year revenue, with 3Q22 OP of 4,185 100 million won (+45% qq, +25% YoY), and 4Q22 OP was 540.3 billion won (+29% qq, +26% YoY).
0 Comments