LG Innotek Thrives on Surge in Q4 iPhone 14 Orders

In accordance with a recent report from BusinessKorea, LG Innotek, a prominent electronic components manufacturing company under the LG umbrella, foresees a remarkable upswing in sales orders for Apple's iPhone in Q4 2022. LG Innotek, a critical supplier for the iPhone 14 Pro series, anticipates a substantial surge in demand.

Projections indicate that the iPhone 14 Pro series will constitute 58% of the initial shipment volume, reflecting a noteworthy 15% year-on-year growth. LG Innotek is poised for a considerable increase in iPhone 14 orders during Q4, with the Pro/Max models expected to capture a record 85% share (as opposed to 65% in Q4 21), leveraging the company's advanced optical solutions.

The forecast for LG Innotek's performance in the second half of 2022 outlines an operating profit of 1 trillion Korean won, reflecting a significant 25% year-on-year increase. The growing share of orders tied to the Pro series, coupled with advancements in camera pixel technology driving an uptick in average selling prices (ASP), contributes to this positive outlook.

Projections for LG Innotek's optical solutions revenue in 2H22, with the iPhone accounting for 80%, stand at 8.6 trillion Korean won. This represents a substantial 46% quarter-on-quarter increase and a noteworthy 12% year-on-year growth. Anticipated operating profits for the third quarter are set at 4.185 trillion Korean won (up 45% quarter-on-quarter and 25% year-on-year), while the fourth quarter is expected to reach 5.403 trillion Korean won (up 29% quarter-on-quarter and 26% year-on-year).

Reports indicate that the iPhone 14 will boast a revolutionary 12-megapixel main camera, doubling the quality of the ultra-wide-angle. With the enhanced ultra-wide-angle camera on the iPhone 14 Pro, key suppliers such as LG Innotek, Sony, Minebea, and Largan are poised to benefit directly from these technological advancements.