KB Securities "Expecting Increased iPhone SE3 Sales... Interest in LG Innotek and BH"

On the 8th, when Apple's 'iPhone 13' series was officially released in Korea, citizens were examining the products at the Apple Store Garosugil branch in Gangnam-gu, Seoul. Photo by Mun Honam munonam@

[Asia Economy Reporter Minji Lee] As the launch of the price-attractive 5th generation (5G) iPhone SE3 approaches, there are opinions that it is reasonable to raise expectations for the performance of domestic iPhone parts companies.

According to industry sources on the 7th, Apple will unveil the new iPhone SE3 and iPad on March 8th and is expected to announce a new version of the iPhone operating system (iOS 15.4) before mid-March. The iPhone launch is expected to take place at the end of April. The new 3rd generation iPhone SE is an entry-level model with upgraded camera, communication, and AP after two years. The 1st generation SE model was released in 2016, and the 2nd generation was released in 2020. It is expected to be launched at $399 (about 470,000 KRW), less than half the price of the high-end model (iPhone 13).

The reason Apple is releasing an entry-level model (iPhone SE3) for the first time in two years since 2020 is analyzed as a strategy to prevent existing iPhone users from leaving and to absorb demand for 5G smartphones. Dongwon Kim, a researcher at KB Securities, said, “More than 70% of customers who purchased the iPhone SE2 in the US in the past were existing iPhone users,” and “In the first quarter, with no worthy competitors in the smartphone market, it is expected to absorb demand for mid-to-low priced 5G smartphones in Europe, India, and South America.”

According to market research firms, the initial production volume of the iPhone SE3 is expected to range from at least 30 to 35 million units to a maximum of 40 to 45 million units. Since Apple upgraded the core hardware components such as the camera, communication, and AP all at once after two years to meet the demand for mid-to-low priced 5G smartphones, good demand is expected to continue.

Accordingly, expectations for the first-quarter performance increase of related parts companies are also likely to rise. In the domestic market, LG Innotek and BH are listed as the main parts suppliers. Researcher Dongwon Kim explained, “Apple’s first-quarter (January to March) sales growth guidance reflects the continued strong sales of the iPhone 13 and the expected increase in iPhone SE3 sales, which will greatly expand the visibility of the performance of related parts companies.”

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