Although one of Apple’s camera lens suppliers for its upcoming lower-end iPhone 12 models is having quality issues, Apple industry analyst Ming-Chi Kuo says the issues are unlikely to have an impact on the devices’ shipping schedule, as long as Apple’s other remain supplier can pick up the slack.
That information comes from a new research note by Kuo and shared by MacRumors.
Kuo says that Genius Electronic Optical has discovered issues with cracking coatings on the wide-angle camera lens destined for the lower-end 5.4-inch and 6.1-inch iPhone 12 models. The issues reared their ugly head during high-temperature/high-humidity (HTHH) testing and will cause delays in the firm’s ability to supply components for the upcoming iPhone models.
Apple’s other supplier for the lenses, Largan, is reportedly not experiencing any quality issues and Apple will likely prioritize supplies from Largan to maintain its launch schedule.
We estimate that the low-end 7P wide-angle lens, CCM, and final assembly mass production of the 5.4-inch and 6.1-inch aluminum frame iPhone will be in mid-to-late August, mid-to-late September, and early October, respectively. We believe that in the uncertain timetable for [Genius] to solve the quality problem of film cracking, Apple will give priority to purchasing Largan’s low-end 1/2.6” 7P wide-angle lens at least in the initial supply stage to ensure that the two aluminum-framed iPhone 12 can be as scheduled.
Kuo says that even if Genius does resolve its issues with the coatings, the firm will likely need to cut its prices by about 30% to regain supply share it will lose to Largan.
Apple last week confirmed that the iPhone 12 lineup will launch “a few weeks later” than usual. Apple is widely expected to release a total of four OLED iPhones, in 5.4, 6.1, and 6.7-inch sizes in 2020.
The 6.7-inch iPhone and one 6.1-inch model are expected to be higher-end devices with triple-lens cameras, while the 5.4 and 6.1-inch models are expected to be lower-end iPhones with dual-lens shooters and a cheaper price tag.
A report last week, citing supply chain sources, indicated that Apple could adopt a phased staggered release approach.