Apple has been collaborating with Sony for many years and buys camera modules from the Japanese for all its iDevices, but for 7 iPhone Plus she might have to choose another partner because she is new Dual chamber it turns out to be difficult to produce.
According to some Asian analysts, Sony has problems in producing the new one iPhone 7 Plus dual camera, even more would have remained behind the schedule established by Apple for the production and supply of the component, so the Americans might have to look for alternatives.
LG Innotek could be the alternative that Apple needs to manufacture the new dual camera a 7 iPhone Plus, and Asian analysts are quite confident that Sony could lose the contract for manufacturing this component of the new smartphone.
Not being able to provide Apple with all the components it needs, those from Sony could be left with only part of the production of dual cameras for the iPhone 7 Plus, LG Innotek being able to supply the rest that the Japanese cannot produce.
We think Sony may not be able to deliver its full share of dual cameras to Apple due to: (1) lower-than-expected yield, and (2) damage to its production facility from the April earthquake in Kumamoto. As a result, we think LGI will gain majority share of the initial dual camera orders from Apple; hence, we upgrade to Buy.
Apart from these, the Asian analysts argue that iPhone 7 it will have an optical image stabilizer in its new camera, this being the first time that Apple offers such a facility in its smartphones with a 4.7 inch screen.
Implementation of a optical image stabilizer in the iPhone 7 camera is the logic since iPhone 7 Plus will have a dual camera, the smaller terminal having to have notable improvements to convince users to buy it.
We expect a sharp increase in ASP module room from 2H16F as we think: 1) dual camera module is likely to command 2.5x ASP premium vs. single-cam, and 2) OIS (optical image stabilization) will also be equipped in the new 4.7" iPhones - currently only the 5.5" model has OIS.
Having said that, slowly, slowly, we are learning everything what Apple is going to offer us in the new iPhone 7 and iPhone 7 Plus.
