Apple Placing 'Massive' Orders From Leading 3D Sensing Laser Supplier Ahead of iPhone 8 Launch

[MacRumors]

Apple supplier Lumentum has received over $200 million in bookings for the rest of the 2017 calendar year, related to components for vertical-cavity surface-emitting lasers (VCSEL), believed to be aimed at Apple's advanced 3D sensing camera on the iPhone 8. The bookings represent a noticeable increase in revenue for the supplier, in comparison to a reported $5 million in 3D sensing revenue during its last fiscal quarter.

Because of this, LoupVentures analyst Gene Munster believes that the September launch of the iPhone 8 will see an increase in the number of iPhones with advanced 3D sensors supporting augmented reality applications. Lumentum is believed to be one of around three companies supplying Apple with VCSEL components, as well as Finisar.

iPhone 8 mockup by Benjamin Geskin​

It's predicted that most of Lumentum's $200 million VCSEL order, "if not the entire order," will be for Apple, leading to further confirmation that AR will be a "focus feature" of the iPhone 8. This "massive" uptick in production has seen Lumentum increase its VCSEL production capacity by 25 to 30 percent more than it had projected as recently as the last quarter.

In the June-qtr, Lumentum recorded $5M in 3D sensing revenue, but more impressively they received over $200M in bookings in the quarter, which they believe will all be shipped by CY17. We believe the majority, if not they entire order, is all being shipped to Apple. We believe these comments further confirms 3D sensing (and in-turn AR applications) will be a focus feature in the next iPhone.

In addition, Lumentum highlighted they have increased VCSEL laser capacity by 25 - 30% from what they anticipated only one quarter ago. Given the uptick in Management's demand forecast, we believe advanced 3D sensing capabilities will be integrated in more iPhones that what most were previously expecting.

Furthermore, LoupVentures believes that the iPhone launch "remains on track" for release in September, with a total 133 million units of new iPhone devices shipping in the second half of 2017. Of those, 55 million (43 percent) will have VCSEL components, related to the next-generation OLED iPhone 8 device. Next year, as more VCSEL production is added, it's predicted that as much as 85 percent of new iPhones shipped in the second half of 2018 will support 3D sensing abilities.

For the other two devices coming in 2017 -- the "iPhone 7s" and "iPhone 7s Plus" -- it's not expected that 3D sensing features supported by advanced VCSEL components will be added. The iPhone 8 will remain the central showpiece device in the new line of iPhones in 2017, particularly with the help from developers creating new experiences in apps fueled by ARKit.

Recent production ramp-up stories have pegged all three new iPhones as entering volume production ahead of their launch in September. Currently, it's expected that the LCD iPhone 7s and iPhone 7s Plus will be fairly easy for customers to obtain, but the OLED iPhone 8 "could fall short of demand" and be difficult to purchase for the first few months of its availability.

Article Link: Apple Placing 'Massive' Orders From Leading 3D Sensing Laser Supplier Ahead of iPhone 8 Launch

 

[Born Again]

So much potential with this ability.

Remember all those guys who said they wouldn't buy an iPhone 8 without touch ID?

Well what did you own before it existed ? Add to that if Facial recognition works then be happy!

 

[Mansu944]

This seems to be getting better and better...I am now excited.

 

[44267547]

This article gives a good indication of what we are going to expect. This iPhone launch is going to be massive. Its likely going to shatter any iPhone sales in the past. Only weeks away.

 

[H2SO4]

So much potential with this ability.

Remember all those guys who said they wouldn't buy an iPhone 8 without touch ID?

Well what did you own before it existed ? Add to that if Facial recognition works then be happy!

That's like saying I wouldn't by a car with out electric windows now. Well sure I had one before but seriously.....?

 

[canadianreader]

So much potential with this ability.

Remember all those guys who said they wouldn't buy an iPhone 8 without touch ID?

Well what did you own before it existed ? Add to that if Facial recognition works then be happy!

I'm one of those guys who said no Touch ID no iPhone 8 for me. Maybe an iPhone 8s would have Touch ID if no I'll adapt then and buy an iPhone with Face ID

 

[djcerla]

... and what are competitors rushing to develop? Under-the-screen touch sensors!

Once again, all taken pants down and looking the other way around.

Apple's advantage in AR will be so ridicolously huge it will not even be funny.

 

[jsalda]

R.I.P. TouchID

 

[iGraham4]

If I was an Apple investor boy would I be excited. Not just for this year though, I truly believe Apple will have an even bigger "Super" cycle next year. All the evidence thus far points to an even bigger OLED iPhone with the body size of the pluses next year. Hopefully they can perfect Under screen Touch ID by then too even if Face ID is as good. It's good to have more biometric verification methods. The pent up demand for the phones next year will be crazy. Best screen to body ratios, best cameras, best custom silicon. Apples best days are ahead of them.

 

[PoppaKap]

Touch ID is so seamless now that it would be sorely missed.

 

[thasan]

So much potential with this ability.

Remember all those guys who said they wouldn't buy an iPhone 8 without touch ID?

Well what did you own before it existed ? Add to that if Facial recognition works then be happy!

but it is confusing.
i am in the market for a macbook pro with touch bar.
my current mbp was purchased in 2011 and i expect the new mbp to last that long.
wondering whether the touchid will be obsolete in the next year or so as an authentication method....

 

[AngerDanger]

Apple supplier Lumentum has received over $200 million in bookings for the rest of the 2017 calendar year, related to components for vertical-cavity surface-emitting lasers (VCSEL),

LASIK Eye Surgery: there'll be an app for that.

 

[agsystems]

If I was an Apple investor boy would I be excited. Not just for this year though, I truly believe Apple will have an even bigger "Super" cycle next year. All the evidence thus far points to an even bigger OLED iPhone with the body size of the pluses next year. Hopefully they can perfect Under screen Touch ID by then too even if Face ID is as good. It's good to have more biometric verification methods. The pent up demand for the phones next year will be crazy. Best screen to body ratios, best cameras, best custom silicon. Apples best days are ahead of them.

^^^this is what everyone is missing....this migration to OLED will take 2-4 years to clear out all the LCD from the market - music to Tim's ears.

 

[deany]

I might be wrong on this, but cant help but feel the faceID is a work around due to under display not being ready...limitations.

If so, iPhone 11th aniversary will have both faceID and touchID, assuming limitations corrected.

Keep everyone happy, but some folks will have to wait for touchID till 2018, and by then maybe faceID will prove better.

 

[Cosmosent]

Apple Cheerleader Munster missed "the Reasoning" ... NOT necessarily iPhone 8-specific ... it's related to the new Depth API Apple announced in June at WWDC 2017 ... in other words, they opened-up their Portrait Mode technology to third-party app developers ... it's part of AV Foundation, and it's one of two BIG feature additions Apple is offering-up to the masses in Sept; the other being HEIF/HVEC image & image sequence support.

NO ONE should be surprised if the Depth Sensors are included with all lenses out in Sept (i.e., 7s, 7s+, 8).

 

[iReality85]

With all this facial recognition that'll be going on (which kind of makes me uneasy, but whatever), I wonder how this will affect battery life for the iPhone 8.

 

[AidenL]

Lumentem , with 5 million of 3D componentry sales one quarter, and now 200 million next quarter - they sure will be bonuses galore this Christmas !

 

[Thebeat07]

Won't be difficult to get if you pre order

 

[Braderunner]

I'm really excited about "iPhone 8". I just hope it's not priced as high as some have stated. Fingers crossed.

 

[X--X]

Wouldn't be smart to place small orders, would it.

 

[iReality85]

Lumentem , with 5 million of 3D componentry sales one quarter, and now 200 million next quarter - they sure will be bonuses galore this Christmas !

I can imagine a meeting between Lumentum and Apple, with Lumentum lamenting, "But we don't have that kind of production capacity!" and then Tim drops a big fat wad of cash fresh from the Bank of Apple saying, "You do now."

 

[Nozuka]

This tech is also used for gesture recognition. Not sure where this would make sense in a phone, but it might be used for that too.

 

[ksnell]

I have always found it interesting how risky it seems for tech suppliers. On one hand, tech moves so fast you can't afford to be caught with obsolete inventory. On the other hand, on a whim, a company could place an order for 40x of your prior quarter's performance and you are expected to spin up production that quick and perform.

It just seems massively unstable as the second one of those big orders doesn't come through, you either have massive layoffs or go bankrupt. I assume they are able to forecast a little better than what I see from the outside, but still.

I guess that it why Apple lessens the bite to some companies by making capital expenditures to help get production up and running.

 

[naeS1Sean]

You say Touch ID will be sorely missed, but wait and see. We don't know what they have planned. And they must think it's pretty darn good if they actually remove Touch ID...

 

[AidenL]

I can imagine a meeting between Lumentum and Apple, with Lumentum lamenting, "But we don't have that kind of production capacity!" and then Tim drops a big fat wad of cash fresh from the Bank of Apple saying, "You do now."

"Just build more production lines!!"