Apple reported strong iPhone sales in its fiscal third-quarter 2025 earnings, pushing overall revenue higher and triggering a ramp-up in shipments across the optical lens supply chain ahead of the new model cycle.
iPhone revenue climbed 13.5% year-over-year to US$44.58 billion, driven by stronger demand for the iPhone 16 over last year's iPhone 15, according to Apple CEO Tim Cook. Cumulative iPhone shipments have now surpassed 3 billion units since the product's 2007 debut.
GSEO, Largan Precision: seasonal demand surge kicks in as FX headwinds ease
Genius Electronic Optical (GSEO) expects third-quarter results to exceed second-quarter levels, while fourth-quarter performance will hinge on post-launch sales of the new iPhones.
GSEO President Yingli Guo said customer pull-ins began in June, adding pressure to capacity as the third quarter enters peak season. Order volumes for the second half of 2025 have already outpaced 2024, pointing to potential gains in revenue and profit. Foreign exchange remains a key headwind.
Guo said new product development is advancing steadily, with technical improvements underway. The number of lens modules is similar to last year, while periscope lens adoption is progressing, though further market share gains will depend on customer adoption.
Largan Precision Chairman En-ping Lin said at a July earnings call that the company is in peak season, with pull-in demand for new iPhones underway. Third-quarter shipments are expected to align with historical trends and grow sequentially. Lin noted that favorable pricing on new models helped mitigate foreign exchange impact, narrowing the margin drag from 4–5% to 2% in the second quarter.
Overseas plant expansion under review; US tariffs pose limited impact
Both GSEO and Largan Precision addressed plans to establish overseas production facilities to diversify risk.
Guo said GSEO is evaluating Vietnam, Thailand, and Malaysia for potential manufacturing sites. Malaysia offers a stronger engineering talent pool, while Vietnam has advantages in supply chain clustering. A final decision has yet to be made.
Largan's Lin acknowledged the challenges of relocating operations outside Taiwan and said the company is still reviewing options. Labor quality and ease of land acquisition are key considerations.
On US tariffs, Guo said GSEO does not ship directly to the US and is thus mostly unaffected, though the company continues to monitor developments. Largan, which also lacks direct US shipments, was previously impacted by China's rare earth export controls, but operations normalized by the third quarter.
As of publication, neither GSEO nor Largan Precision had disclosed July operational or shipment data. Final figures will follow official company disclosures.
Article translated by Levi Li and edited by Jack Wu
