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.
iPhone 15 Pro Max cameras
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%.