Sharp Exits iPhone 16 Camera Module Supply Chain

SHARP, a Japanese electronics company, is currently not involved in the development of camera modules for Apple's iPhone 16 series. This absence signifies that the company has exited the supply chain for Apple's iPhone 16 camera modules.

According to South Korean media outlet The Elec, Sharp has been Apple's second-largest supplier of camera modules, second only to its competitor LG Innotek. However, in September 2021, Sharp's camera module factory in Vietnam had to halt production due to the pandemic, resulting in a continuous decline in the supply of high-end models from Sharp.

Insiders suggest that LG Innotek is currently the primary supplier for iPad and iPhone 3D time-of-flight modules, holding over 70% of the market share in Apple's camera module supply chain. LG Innotek will also become the main supplier for the foldable zoom camera module planned for Apple's iPhone 15 Pro Max, set to be launched this year.

The report highlights that Sharp's exit leaves Apple with only three major camera suppliers: LG Innotek, Foxconn, and GoerTek.

Recently, renowned analyst Ming-Chi Kuo also revealed that Sharp might withdraw from the Camera Module (CCM) supply chain for the iPhone 16. The existing CCM suppliers, including LG Innotek, Foxconn, and GoerTek, are expected to benefit from this decision. Kuo believes that GoerTek will benefit more than LG Innotek and Foxconn due to Luxshare's potential acquisition of Sharp's CCM business. If this happens, it will significantly increase orders for GoerTek. Additionally, GoerTek's smaller revenue scale makes its performance more susceptible to marginal changes.