 |
Apple’s iPhone 17 Pro. (Courtesy of Apple) |
[Alpha Biz= Paul Lee] Samsung Electro-Mechanics and LG Innotek are expected to face off in a new competition over Apple’s iPhone camera supply chain. LG Innotek has long dominated the supply of iPhone camera components, but Samsung Electro-Mechanics is now set to make its first entry into Apple’s camera ecosystem.
According to industry sources on January 6, Samsung Electro-Mechanics plans to supply flat-plane (FP) coils used in actuators for Apple’s iPhone cameras. FP coils are key components that drive camera actuators, enabling autofocus and optical image stabilization (OIS). To support the supply of FP coils, Samsung Electro-Mechanics is preparing to collaborate with STEMCO, a joint venture with Japan’s Toray Industries.
This marks the first time Samsung Electro-Mechanics has conducted camera-related business with Apple. The company has traditionally been a core supplier responsible for camera components used in Samsung Electronics’ Galaxy smartphones. Although Samsung Electro-Mechanics has pursued opportunities to supply Apple’s camera business as part of its customer diversification strategy, commercial ties had not materialized in the past due to the competitive relationship between Apple and Samsung Electronics in the smartphone market. As a result, Samsung Electro-Mechanics became firmly established as the supplier for Galaxy cameras, while LG Innotek emerged as Apple’s primary camera partner.
LG Innotek is widely regarded as Apple’s largest iPhone camera supplier, reportedly accounting for more than 50% of total camera module volumes. Apple-related business is said to represent over 70% of LG Innotek’s annual revenue, which exceeds KRW 20 trillion.
However, Samsung Electro-Mechanics’ entry into Apple’s supply chain signals a potential shift. While its current scope of supply is limited to FP coils, the move could serve as a foothold for expanding into additional camera components over time.
Industry observers note that this development reflects aligned interests between the two companies: Samsung Electro-Mechanics is seeking to expand its business portfolio, while Apple is actively pursuing supply chain diversification.
In fact, Apple has been increasing camera component sourcing from suppliers other than LG Innotek, including Foxconn and Cowell Electronics, as part of efforts to enhance supply stability and reduce costs through greater competition among vendors.
With its proven technological capabilities and mass production track record, Samsung Electro-Mechanics is seen as well positioned to meet Apple’s supply chain strategy. The company is also continuing to explore opportunities to supply full camera modules to Apple, further aligning the interests of both parties.
Nevertheless, analysts caution that full-scale commercialization may take time. Apple is known for its stringent requirements, including extensive performance evaluations and the establishment of dedicated production lines, meaning it typically takes one to two years or longer for new component suppliers to be fully qualified.
As two of Korea’s leading component manufacturers, LG Innotek and Samsung Electro-Mechanics are now set to compete for Apple’s camera business. Market attention is increasingly focused on whether both companies can secure and maintain core positions within Apple’s camera supply chain over the long term.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
