Sony announced a decision to halt production and development of advanced camera modules. Sony & LGI were dual-cam module vendors for the iPhone 7. In order to manufacture dual-cam modules, the production line needs to be modified (more precise alignment, rigorous inspection, assembly that combines a pair of cameras into a single module, etc.), and thus CCM vendors are required to have dedicated lines. We believe LGI could get 100% of iPhone 7 dual-cam module volumes in 2H16 following Sony?s sudden exit. It makes sense for Sony to focus more on its expertise in image sensors, which generate bigger margins than camera modules
Of course there could be rush orders for other members of the Apple CCM supply chain, but we believe it would take them a few months to modify production lines for dual-cam modules, run a pilot line, improve yield and obtain final customer qualification towards mass production. Assuming a Sep 2016 launch of the iPhone7 series, following the same timing as its predecessors, iPhone 7 Plus dualcam modules would need to be shipped to the customer from end-June, and only LGI is capable of meeting this deadline at the moment.
