Apple in it’s attempt to diversify its production and supply chain as well as reducing it’s dependence on Chinese market, the company is looking to partner with Samsung Electro-Mechanics to handle the Apple’s camera parts.
With that, it will be a major win for the South Korean tech giant whose main customer is the Samsung Electronics over a long period time and the addition of another giant tech company will be a big addition to the company’s product portfolio.
Report has it that Apple wants to have a stabilized source for making its smartphone camera lenses which is what prompted to the selection of Samsung Electro-Mechanics considering the fact that the US government that continued to sanction more Chinese tech companies which is ultimately leading other companies like Apple to consider other alternatives outside of China.
Also, you should note that the Samsung Electro-Mechanics had been the company supplying Laminated Ceramic Capacitors (MLCC) and Flexible Printed Circuit Boards (RF-PCB) to Apple so this isn’t just an entirely new business relationship between the two tech companies just that it will be the first time it will be supplying lens to the US tech giant.
Even the report furthered by stating that LG Innotek which had been the supplier of camera modules to Apple is in fact seeking ways of expanding it’s position within the company’s camera SCM as a means of diversification of suppliers.
This new development was based on a response to the US Department of Commerce sanctioning 11 Chinese tech companies for suppressing ethnic minorities in the country and among them is O-Film Tech which provides iPhone camera modules.
With that said, Apple is now seeking to move to LG Innotek which is making its camera modules in factories in Gumi and Vietnam.
And not to forget that Apple had started producing iPhone 11 in India through Foxconn‘s facility near Chennai. Another interesting report about the company trying to diversify its production chain is that the next generation AirPods as well as the 2021 AirPods Pro will be made in Vietnam.