Malcolm Owen
The iPhone 15 Pro Max will still be the highest-selling iPhone model in the first half of 2024, according to analyst Ming-Chi Kuo, with its special telephoto lens being highly profitable to supply chain partner Largan.
The premium models of iPhone tend to be the big sellers for Apple, and for the iPhone 15 Pro models, it's no exception. In analysis of Apple's camera lens supplier Largan, TF Securities analyst Ming-Chi Kuo believes that the Pro Max model is benefiting from sales the most.
The iPhone 15 Pro Max will "still account for 40-45% of iPhone 15 shipments in 1H24," writes Kuo in a Medium post discussing Largan on Monday. As it turns out, that particular model is very financially beneficial to the supplier, and "critical" to its off-season financial results.
The tetraprism lens arrangement in the Pro Max model is expected to increase Largan's revenue by NT$3.4 billion to NT$3.8 billion ($108.8 million to $121.7 million) in the first half of the year, says Kuo. "This lens alone could contribute to Largan's 20-25% YoY revenue growth in 1H24," he continues.
That lens will be used in more iPhones in the 2024 releases, Kuo said in an early December note. Both Pro models of iPhone 16 will apparently use it.
Largan's yield of the lens will also continue to improve throughout the period, which will help Largan's profits further.
This situation with the iPhone 15 Pro Max also means Largan has a "rare positive view of off-season demand for high-end lenses," Kuo adds, when viewing the business overall.
Largan is anticipated to beat seasonality for the first half of 2024, with a 30% to 40% year-on-year revenue growth and a gross margin above 50%.
Charles Martin
William Gallagher
Christine McKee
Wesley Hilliard
Andrew Orr
5 Comments
Oh, the irony. First, for all the "Apple's prices are too high," posts, its most expensive phone--and the only phone to have its base price raised in the U.S.--is Apple's best seller, and not by a small margin. Second, that 5X tetraprism lens which is helping to drive sales is easily outperformed by the 3X lens it replaced in most picture-taking situations where the telephoto lens is used. (Many comparison photos in online reviews, including the review published by AI, document this.) It is only when shooting at focal lengths of 120mm and above that the new lens is superior.
Of course, like with all previous iPhones most people jump at the opportunity of buying the newest one, regardless of whether they need one or not. The addition of USB-C has only made them want it more.