LG Innotek said Apple iPhone orders are expected to reach an all-time high in 4Q22, with a surge in order inflows.
The analyst noted that optical solutions will benefit from a surge in iPhone 14 orders in 4Q22 (30-40% increase in a single quarter), as the Pro / Max share is expected to reach a record 85% in 4Q22 (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:
(1) the lack of global competitors for the iPhone in 2022-2023;
(2) Despite the global recession and inflationary pressures, iPhone sales remained strong.
LG Innotek 2H22 forecast: OP is 1 trillion won (up 25% year-on-year):
(1) The share of Pro Series bound orders is growing.
(2) The upgrade of camera pixels drives the growth of ASP.
(3) 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).
