Apple camera lens manufacturer posts significant profit, shedding doubt on iPhone order cuts

iPhone 7 camera module manufacturer Largan Precision has posted its best financial report in 14 months, specifically citing strong orders from Apple.

On Thursday, Apple's iPhone 7 camera lens module maker Largan Precision reported consolidated revenues of NT$5.446 billion ($170 million) for December, the highest monthly level since the last peak in November 2015. The figure is up 4.58% from November and 36.87% year-over-year.

The numbers are solely from the iPhone 7, and other sales. It is too early for any "iPhone 7S" or "iPhone 8" orders to be affecting the earnings for the company.

Over 70% of the company's orders were 10MP and up. Nearly 20% were 8MP, with less than 10% coming from 5MP camera lens modules.

Largan's number's on an annual basis aren't as good. Despite the profits for the last quarter growing 9.8% from the previous one, annual revenues fell 13.45% versus 2015.

Largan's report stands in contrast to recent reports of decreases in orders for the iPhone, which may be attributable to seasonal drops in demand, as the iPhone cycle matures and retail availability increases. Recent supply chain reports claim up to a 10% drop in orders, but only Apple knows the numbers for sure, with the quarterly earnings report likely to shed some light on the situation on Jan. 31.

In May 2016, Largan blamed a "significant scale-back of orders from a major customer," thought to be Apple, for its poor results for the month.

Largan is believed to have something similar to "most favored supplier" status with Apple, however. When reports started circulating over the summer that Apple was pressuring suppliers for better component pricing, Largan was said to be excluded from those discussions.

6 Comments

rogifan_new 4297 comments · 9 Years

About 7 years ago

I thought Tim Cook said not to use anecdotal supply chain data to predict sales?

macxpress 5910 comments · 16 Years

rogifan_new said:

I thought Tim Cook said not to use anecdotal supply chain data to predict sales?

He did but people just don't listen. You cannot go by supply orders. They don't have the slightest clue as to whats going on and why. Lowering orders doesn't necessarily mean there's diminishing interest for their products. Apple is pretty damn good with its supply chain and inventories. It knows what its doing far better than some pissant analyst or insider.

Someday....maybe people will understand this.

Rayz2016 6957 comments · 8 Years

rogifan_new said:

I thought Tim Cook said not to use anecdotal supply chain data to predict sales?

He's said it so often he must be blue in the face.

This just in:

Meteor on collision course with Earth!
iPhone sales plummet as a result!
Consumers turn to Samsung!

lkrupp 10521 comments · 19 Years

Oh look! Fake news in an attempt to counter previous fake news. Anybody remember the movie Inception?

MacPro 19836 comments · 18 Years

macxpress said:

rogifan_new said:

I thought Tim Cook said not to use anecdotal supply chain data to predict sales?

He did but people just don't listen. You cannot go by supply orders. They don't have the slightest clue as to whats going on and why. Lowering orders doesn't necessarily mean there's diminishing interest for their products. Apple is pretty damn good with its supply chain and inventories. It knows what its doing far better than some pissant analyst or insider.

Someday....maybe people will understand this.

... 'People' and 'understand' ... really? ;)