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LG Innotek to invest $ 500 million in expanding iPhone cameras and beyond
News from South Korea that LG subsidiary LG Innotek may have signed a long-term contract to supply Apple components. This is hinted at by LG Innotek’s significant investment in the expansion of one of the company’s South Korean factories, which produces camera modules for smartphones.
Apple iPhone on the counter in a store. Image source: Reuters
It is believed that in 2021, about 60% of LG Innotek’s revenue came from supplies for the production of iPhones. The company assembles camera modules based on Sony and Samsung image sensors, which are then sent to Foxconn to release Apple smartphones. In this business, revenue of LG Innotek last year grew by 20% to 9.54 trillion won, which corresponds to $ 8.6 billion.
According to sources, LG Innotek camera modules stand out among competing products from other companies, for example, Sharp, especially for their high-quality image stabilization technology, for which Apple allegedly appreciates it. On this basis, and due to the possible conclusion of a long-term contract, LG Innotek decided to invest 547.8 billion won ($ 496 million) in the expansion of the plant for the production of camera modules.
Among the monotonous mass of products, smartphone cameras remain one of the few factors that can attract a consumer and which marketing can emphasize. This is exactly what LG Innotek is betting on today, hoping not only to remain Apple’s supplier, but also to interest other smartphone manufacturers with its products.