Last month, the primary iPhone casing supplier, American company Jabil, announced that it had reached a preliminary agreement with China’s prominent EMS (Electronic Manufacturing Services) firm, BYD, to sell its Mobile Business Unit for $2.2 billion. The completion of the subsequent transaction will depend on due diligence findings and final agreement terms.

TrendForce analysis reveals that as Jabil’s main focus in its Mobile Business Unit is iPhone casing manufacturing, the successful conclusion of this deal would leave iPhone casing supply primarily in the hands of Chinese and Taiwanese manufacturers, potentially bolstering China’s position in the supply chain.

Furthermore, BYD’s acquisition of Jabil’s China Metal Business not only marks its formal entry into the iPhone supply chain, expanding its presence, but also signals its aspirations to become a supplier in the iPhone assembly business.

Jabil’s main production facilities for its Mobile Business Unit are located in Wuxi and Chengdu, China. Wuxi primarily handles iPhone aluminum frame manufacturing, while Chengdu focuses on stainless steel components. This year, the iPhone 15 Pro features a titanium alloy frame for the first time, and Jabil is a key supplier for this component.

In terms of operational performance, Jabil’s Wuxi facility, due to its smaller scale compared to Foxconn and Lens Tech, and lower product prices, has underperformed expectations. Conversely, Chengdu, responsible for high-end metal components, has superior technical capabilities and better performance.

Considering Jabil Group’s global footprint and the configuration of its key customer supply chains, the company had been seeking a buyer for some time. Initially, Luxshare was a contender in the acquisition, but a consensus on the purchase price was not reached, leading BYD to secure the deal at a higher price.

TrendForce believes that BYD’s acquisition presents an opportunity to replicate Lens Tech’s experience in acquiring the Catcher’s Taizhou factory in 2020, becoming a direct supplier of iPhone casings. Given Jabil’s involvement in both high-end and low-end iPhone casing businesses, BYD might even be in a position to directly compete with Foxconn for high-end orders. This move would make it difficult for Lens Tech, which still lacks a high-end product line and advanced manufacturing processes, to join the ranks of high-end product suppliers.

In the long term, TrendForce believes that BYD, which is already an iPad EMS supplier, aims to leverage its position in critical components to venture into iPhone EMS business in the future, expanding its EMS business footprint.

(Photo credit: BYD)

Report to the media, China Times the analyst, Ming-Chi Kuo, from TF International pointed out that demand for the Huawei Mate 60 Pro exceeded expectations, leading to a 20% increase in shipments in the second half of 2023, reaching 6 million units. In 2024, Huawei is set to launch new high-end phones in the P series and Mate series, with procurement reaching a scale of 30 to 40 million units.

Kuo emphasized that Taiwanese manufacturer COMPEQ will experience revenue growth thanks to Huawei’s high-end phones and Amazon’s AI servers.

Due to the Huawei Mate 60 Pro’s adoption of a 12-layer anylayer HDI motherboard, COMPEQ’s production yield is better, accounting for approximately 50% to 60% of shipments, significantly higher than the second supplier, Founder Technology.

It is expected that COMPEQ will be the largest motherboard supplier for Huawei’s new high-end P and Mate series in 2024, with contributions from Huawei’s high-end phones projected to grow by at least 150% to 200% in 2024.

COMPEQ will also enter the AI server market in 2024, becoming a long-term growth driver for the company. If successful, Amazon/AWS will be one of COMPEQ’s key customers for AI servers in 2024. (Image credit: Huawei)

(Source: https://www.ctee.com.tw/news/20230914700952-430502)

Source to Tai Sounds, in what is considered a major camera upgrade highlight for the iPhone 15 Pro Max, the “periscope lens,” Apple made no mention of it during its product announcement. Industry insiders suggest that the 5x optical zoom is achieved using a periscope lens, and Apple may have chosen not to disclose this technology, possibly due to competition within the industry. Renowned analyst, Ming-Chi Kuo, who is known for his deep understanding of Apple, stated that Largan Precision has expanded its production capacity to meet this order.

Kuo explained that Apple’s long-range camera for the iPhone will adopt a periscope design starting this year. This design will be used in the iPhone 15 Pro Max released this year and the iPhone 16 Pro Max and iPhone 16 Pro scheduled for next year. Largan Precision, a Taiwanese manufacturer, has expanded its production facilities in both Taichung and Xiamen to accommodate this order.

During the Apple product presentation, they emphasized the 5x optical zoom capability of the iPhone 15 Pro Max, claiming it’s equivalent to having seven individual camera lenses. However, there was no mention of the key technology, the “periscope lens,” which led some market experts to believe that the iPhone 15 Pro Max did not incorporate this technology, causing a decline in optical lens-related stocks.

According to the analyst, Ming-Chi Kuo’s,  from Tianfeng Securities’ latest research on September 13th, Apple’s long-range camera for the iPhone will indeed adopt a periscope design starting this year, covering the iPhone 15 Pro Max, next year’s iPhone 16 Pro Max, and iPhone 16 Pro.

In terms of technical specifications, Kuo’s analysis indicates that the periscope lenses on the iPhone 15 and iPhone 16 will share similar specifications, including a 1/3″ 12MP sensor, f/2.8 aperture, Sensor shift support, and 5-6x optical zoom.

Kuo also pointed out that the cost of components depends on yield rates in mass production. Based on estimates using the cost of existing periscope lenses as a reference, the total production value of various components for the rear cameras of the iPhone 15 series in the second half of this year, including CIS, VCM, lenses, and CCM, is expected to grow by 5-10%, 20-25%, 65-70%, and 20-25%, respectively.

Benefiting from more iPhone 16 Pro models adopting periscope lenses and other rear camera upgrades, the total production value of various components for the rear cameras of the new iPhone 16 series next year, including CIS, VCM, lenses, and CCM, is expected to grow by 15-20%, 15-20%, 40-45%, and 15-20%, respectively.

Kuo also explained that among all the components, the lens specifications and business models are changing the most, and the growth in production value is most significant. A complete periscope lens module includes high-priced 1G2P lenses, two high-priced prisms, and lens barrels. High-priced materials are the key drivers of production value. Apple’s lens suppliers will provide more complex assembly services for the first time, as Largan Precision and Yujingguang have expanded their production capacities in Taichung and Xiamen, respectively, to meet this order. (Image credit: Apple.com)

(Source: https://www.taisounds.com/news/content/76/80703)

On September 12, 2023, Apple unveiled its iPhone 15 series at its annual fall product launch event. The four models introduced were the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max.

TrendForce’s Perspective:

• Limited Key Features with a Focus on High-End Models

Upon examining the four new devices released by Apple, it becomes evident that, similar to the iPhone 14 series introduced in 2022, Apple has continued to adopt a “focus on high-end upgrades” strategy. The higher-tier Pro series highlights upgrades such as the inclusion of the new A17 Pro processor (manufactured using TSMC’s 3nm process), a titanium metal casing, and a charging port that supports USB 3.0 with 10Gbps transfer speed. Additionally, the flagship Pro Max model introduces a periscope camera module capable of achieving 5x optical zoom for the first time.

In contrast, the lower-tier iPhone 15 and iPhone 15 Plus show relatively modest upgrades. They feature the previous generation A16 Bionic processor (manufactured using TSMC’s 4nm process), and while their charging ports adhere to USB standards, they only support USB 2.0 transfer speeds. The most notable upgrade for these models is the inclusion of dynamic islands and an upgraded 48MP main camera. This strategy clearly distinguishes Apple’s products across different price ranges, and the “focus on high-end upgrades” approach aims to drive up the average selling price (ASP) and subsequently increase revenue.

• The Chinese Market Remains a Significant Variable

Just two weeks ago, Huawei quietly released 5G smartphones, despite still facing restrictions from the U.S. in chip technology. This resulted in a significant gap between the chip manufacturing process used in Huawei’s new devices (SMIC N+2, roughly equivalent to TSMC’s 7nm process) and the most advanced process technology (TSMC’s 3nm) currently available. Nevertheless, consumer response in China has been positive, and there have been reports of Huawei continually revising its new device shipment figures.

Despite Apple’s supply chain diversifying away from China due to international geopolitical risks, China remains an extremely important market for Apple. Apple previously benefited from Huawei’s withdrawal from the high-end smartphone market in China due to sanctions, capturing a significant portion of Huawei’s market share in the country. Even as the global smartphone market faces challenges, Apple continues to experience growth in China’s high-end market. With the strong resurgence of Huawei as a formidable competitor and reports of China potentially banning government officials from using iPhones and other foreign brands, if confirmed, it is likely to impact iPhone sales. Given the various challenges within the Chinese market, Apple’s ability to maintain strong sales performance will be the biggest variable for the iPhone 15’s success.

(Photo credit: Apple)

TrendForce’s latest insights reveal that by 2023, shipments of foldable smartphones could skyrocket to an impressive 18.3 million units, marking a 43% YoY surge. However, this only captures a slim 1.6% of the year’s total smartphone market. Fast forward to 2024, and we’re looking at another leap—a 38% growth, translating to a hefty 25.2 million units and nudging the market share up to 2.2% Looking at the medium to long term, TrendForce believes the expansion of the foldable smartphone market is inevitable. By 2027, shipments could soar to a whopping 70 million units, seizing around 5% of the global smartphone market.

The driving force behind the foldable market’s expansion? Reduced costs and the expansion strategies of Chinese brands. TrendForce posits that as the cost of components plummets—especially panel and hinge expenses—the stage is set for foldable phone prices to potentially slide below the US$1,000 threshold. This shift would undeniably spur consumer interest and purchase intent.

Branding paints its own picture. This year, Samsung once again led the pack, with projections pointing toward a robust 12.5 million unit shipment. But there’s a twist. Its stronghold, a staggering 82% market share in 2022, slipped to 68%. Why? It’s because of the surging tidal wave of foldables from Chinese contenders. Huawei clinched the runner-up spot, estimated to have dispatched around 2.5 million foldables for a respectable 14% of the market share. Hot on their heels were OPPO and Xiaomi, with market shares of 5% and 4%, respectively. Other brands have each snagged less than 4%.

Pandemic repercussions echo here too. TrendForce sheds light on the fact that Chinese foldable brands, impacted by recent global events, have mostly kept their eyes on home turf, eschewing aggressive overseas expansion. However, if these brands pivot and ramp up their global sales game, they might just turbocharge the foldable market’s growth trajectory.

And then, there’s Apple—the enigmatic juggernaut. To date, Apple’s foray into foldables has been tepid, to say the least. This restraint has undoubtedly doused consumer fervor for foldable. Yet, true to form, Apple’s unwavering obsession with user experience could be the culprit. Persistent challenges with foldable tech—think panel evenness and hinge design—might be holding them back. But here’s the kicker: Achieving perfection with larger foldable panels is somewhat simpler than their smaller counterparts. Could this mean Apple might leapfrog right into medium-sized foldable products—like laptops or tablets? Only time will tell.

For more information on reports and market data from TrendForce’s Department of Display Research, please click here, or email Ms. Grace Li from the Sales Department at graceli@trendforce.com

(Photo credit: Samsung)