Shipments of voice coil motors (VCMs) used in camera modules for Apple's upcoming 5G iPhones are likely to see a slowdown around the middle or the latter half of the second quarter, according to industry sources.
The new 5G iPhones will have a multi-camera design, and orders for VCMs were significant during the first quarter becuase of Apple's high estimation for shipments of the components, the sources said. However, with Apple reportedly having reduced its shipment estimates in mid-April, VCM orders are expected to be seriously undermined, the sources noted.
The sources believe Apple may still unveil the 5G iPhones in 2020, but mass shipments for the new devices might not pick up until the first half of 2021, especially models supporting mmWave communication, as the pace on certification for antenna in package (AiP) for 5G has significantly decelerated.
VCMs used in iPhones' camera modules are primarily supplied by Japan-based Mitsumi and ALPS, while related Taiwan-based component suppliers also saw their first-quarter sales benefit from Apple's strong orders. However, they have begun turning conservative about their orders in the second quarter and are having no visibility for orders in the second half.
At the moment, China-based telecom carriers are cooperating keenly with local handset brands and telecom equipment makers to push into the domestic sub-6GHz market in the second half, while mmWave technologies are unlikely to see demand begin picking up in 2020 due to a lack of comprehensive infrastructure.
On the other hand, the release of the second-generation iPhone SE may cripple demand for high-end smartphones such as the 5G iPhones as the coronavirus pandemic has seriously undermined consumers' purchasing in Europe and North America.
In addition to VCMs, Taiwan-based suppliers of power amplifier (PA) have also seen declines in demand for RF components from smartphones brands, but suppliers of vertical cavity surface emitting lasers (VCSEL) have continued seeing stable orders at the moment.
Article translated by Joseph Tsai
