Apple’s iPhone 16 Pro is set to feature a tetraprism 120 mm camera, driving demand for this advanced technology in 2024. This information comes from Apple analyst Ming-Chi Kuo, who highlights that the market’s estimate of Largan’s EPS for 2023/4Q23 is significantly lower than his projection.
Improvements in Tetraprism Lens Assembly
Kuo emphasizes that due to improvements in the yield of the tetraprism lens assembly for the iPhone 15 Pro Max and higher-than-expected shipments of high-end Android phones, the 2023 EPS is anticipated to reach ~150 (compared to the market consensus of 130–140). Largan, the exclusive supplier of the tetraprism (periscope) camera lens for the iPhone 15 Pro Max, has now improved the yield to 70% or more, making the tetraprism lens assembly profitable and significantly boosting EPS in 4Q23.
The Future of Smartphone Photography in 2024
Looking ahead to 2024, Kuo anticipates that Apple will incorporate the new camera in its smaller pro models, resulting in a 160% YoY growth in iPhones with the technology. He also highlights Apple and HUAWEI as the two fastest-growing brands in global periscope camera smartphone shipments for 2024.
Largan is projected to be the primary supplier of periscope lenses for both Apple and HUAWEI, with supply shares of 85–90% and 50–60%, respectively. With improved yields contributing to profits and a substantial 130% increase in total periscope orders for 2024, the profitability is expected to surpass market consensus.
Huawei’s P70 Series: Benefiting from Kirin Chips
In addition to Apple’s advancements, Kuo notes that the upcoming Huawei P70 series, benefiting from its own Kirin chips, is expected to see a 100% YoY shipment growth in 2024 compared to the P60 series in 2023.