LG Innotek Smiles Over iPhone 12 Success, Plans to Increase Facility Investment

LG Innotek to Invest 548.7 Billion KRW in Facilities This Year, Up 14% YoY
1 Trillion KRW Invested in Camera Module Sector Over Past 2 Years
Preparing for Increased Demand from iPhone 12 and Successor Models

[Asia Economy Reporter Suyeon Woo] LG Innotek is increasing its facility investments in line with the success of Apple’s iPhone 12, for which it supplies camera modules. With the iPhone 12 achieving record-breaking performance and LG Innotek’s exclusive supply of the ‘Sensor-shift (image stabilization)’ technology expected to be applied to the next model, the company is preparing for expanded demand.

According to the Financial Supervisory Service’s electronic disclosure system on the 18th, LG Innotek will make new facility investments of 547.8 billion KRW in its optical solutions (camera module) division. This represents a 14% increase compared to the investment scale of 479.8 billion KRW a year ago, and with this, LG Innotek has invested over 1 trillion KRW in the optical solutions sector alone over the past two years.

Industry insiders expect LG Innotek to record its highest-ever performance this year as sales of the iPhone 12, equipped with LG Innotek’s sensor-shift (image stabilization) camera technology, show strong results. Last year, 70% of LG Innotek’s total sales came from the optical solutions division, with its major client Apple accounting for 60-70% of that share.

iPhone 12 Pro Max with LG Innotek's sensor-shift technology (photo far right) / Photo by Yonhap News

In the securities industry, Apple’s smartphone shipments this year are forecasted to reach 218.2 million units, the highest since 2015. In fact, sales of the iPhone 12 series in the fourth quarter of last year reached approximately 56 million units, marking the third-highest record for new model sales in any fourth quarter. Among these, the iPhone 12 Pro Max equipped with LG Innotek’s sensor-shift technology is reported to account for over 50% of sales.

Furthermore, with expectations that Apple will expand the application of sensor-shift technology to the next model, the iPhone 13, it is anticipated that the number of models featuring this technology will increase to three or four this year. To prepare for this demand, LG Innotek is considering expanding both existing and new lines, including sensor-shift and front and rear 3D sensing modules.

Juminwoo, a researcher at Meritz Securities, said, "The replacement cycle for models that set record sales in 2016-2017 has arrived, and replacement demand is still heavily accumulated. If the upcoming iPhone 13 surpasses the demand of its predecessor and challenges record-breaking sales, LG Innotek’s new facility investment amount is likely to be revised upward."

This content was produced with the assistance of AI translation services.