Get Ready for the Future: iPhone 16 Set to Revolutionize Smartphones with AI-Powered Technology
Apple’s iPhone 16 Series Release: A Boost to Domestic Companies
The highly anticipated release of Apple’s new smartphone, the iPhone 16 series, is just around the corner. Industry observers believe that this latest series will stimulate the desire of existing users to upgrade their phones, particularly as it is the first iPhone series to support artificial intelligence (AI) functions.
Major domestic companies that supply parts to Apple, such as Samsung Display, LG Display, Samsung Electro-Mechanics, and LG Innotek, are expected to benefit from the release of the new iPhone series.
According to industry sources, Apple will hold a new product launch event at the Steve Jobs Theater at Apple Park, its headquarters in Cupertino, California, USA. The new product will be released in four models: Standard, Plus, Pro, and Pro Max, just like its predecessor. The higher-end models, Pro and Pro Max, are expected to have larger screens than their predecessors.
Expectations are high for the new iPhone with AI. As Apple’s first AI phone, it is likely to stimulate replacement demand from existing users. Apple previously unveiled its own generative AI, “Apple Intelligence,” at the Worldwide Developers Conference (WWDC) in June.
iPhone shipments this year are expected to increase by 7% year-on-year to 241 million units, exceeding the record high of 237 million units in 2021. Apple is also showing confidence by estimating the initial shipment volume of the iPhone 16 series to be higher than last year, around 90 million units, a 10% increase from the previous year.
Major domestic companies in the ‘Apple value chain’ are also expected to benefit from the release of the new iPhone series. Samsung Display and LG Display will supply OLED panels for the iPhone 16 series, while Samsung Electro-Mechanics will supply multilayer ceramic capacitors (MLCC) and package substrates. LG Innotek will supply folded zoom camera modules.
If the iPhone 16 series is a hit, it is likely to lead to performance growth for these companies. Securities firms are also expecting good performance. Samsung Display is expected to exceed its operating profit in the second quarter, while LG Display is expected to turn a profit in the fourth quarter. Samsung Electro-Mechanics and LG Innotek are also expected to benefit from the release of the new iPhone series.
Samsung Display will supply relatively large quantities of OLED panels for iPhones in the second half of this year, which is expected to exceed its operating profit in the second quarter. LG Display’s consensus operating loss for the third quarter is 4.7 billion won, and its operating profit estimate for the fourth quarter is 375.3 billion won.
Samsung Electro-Mechanics’ operating profit for the third quarter is estimated to be 252.3 billion won, and the operating profit for the fourth quarter is expected to be 224.1 billion won, which is expected to be better than the second quarter. LG Innotek’s consensus operating profit for the second half of the year is 794.1 billion won, which is expected to be the best performance in three years since the operating profit in the second half of 2021.