Samsung Electronics and Apple Increasing High-Resolution Camera Adoption... "Domestic Companies Expected to Benefit"

Daishin Securities Report

On the 10th, the 'Galaxy S22' was exhibited at the Samsung Electronics Delight Shop in Seocho-gu, Seoul. On this day, Samsung Electronics held an Unpacked event and unveiled the new product, the 'Galaxy S22 series.' It is sold in three models: the standard Galaxy S22, the large-screen mid-range Galaxy S22+, and the phablet premium Galaxy S22 Ultra equipped with an S Pen. / Photo by Mun Honam munonam@

[Asia Economy Reporter Myunghwan Lee] As major smartphone manufacturers such as Samsung Electronics and Apple increase the adoption of high-performance cameras, securities firms have forecasted that domestic camera component companies will benefit.

On the 26th, Daishin Securities analyzed, "Folded zoom cameras require new forms and technologies compared to previous camera structures, so they will rely on domestic component companies."

Daishin Securities expects that major manufacturers will increase the adoption of 'folded zoom' cameras with enhanced high-magnification performance in the global smartphone market next year. Samsung Electronics already applied folded zoom cameras to the Ultra model of the Galaxy S20 series released in 2020. Daishin Securities predicted that Apple will adopt folded zoom cameras for the first time in the high-end model (Pro Max) of the iPhone 15 series scheduled for release in the second half of next year. Daishin Securities evaluated that the expansion of specifications and performance of such smartphone cameras is gradually replacing the premium DSLR market of digital cameras.

Folded zoom cameras are designed horizontally rather than vertically like traditional telephoto lenses that zoom in on distant objects, utilizing light refraction. They are also regarded as cameras with a structure that minimizes the so-called 'camera bump' phenomenon where the camera protrudes from the back of the device. Daishin Securities predicted that folded zoom cameras will rely on domestic component companies due to their need for new forms and technologies. It explained that domestic component companies will play a pivotal role in the precision of OIS (optical image stabilization).

Daishin Securities anticipated that LG Innotek and Jahwa Electronics are likely to supply components. LG Innotek is expected to supply triple and 48-megapixel main cameras as its core products while also supplying folded zoom cameras in 2023. Daishin Securities also estimated that Jahwa Electronics will add Apple as a new client. These companies are expected to secure Samsung Electronics and Apple, the global smartphone market share leaders ranked first and second, as customers starting next year, showing high sales growth.

Researcher Kangho Park of Daishin Securities analyzed, "OIS components for Samsung Electronics and Apple are believed to be based on independent technology and patents held by Korean companies," adding, "If Chinese smartphone companies actively adopt folded zoom cameras in the premium segment, there is also potential for additional sales to China."