In a surprising development in the tech industry, Apple has reportedly made a strategic decision to exclude LG Innotek from its list of suppliers for the next-generation folded zoom actuator. This move, expected to significantly impact the business plans of LG Innotek’s new CEO, Hyuk-soo Moon, has raised questions about the future of the company’s relationship with one of its key clients.
According to a recent report by Alpha Economy on the 14th, Apple is set to replace LG Innotek with a Chinese partner for the next-generation folded zoom actuator, slated to replace the current 5x folded zoom actuator. An official familiar with the contractual relationship between Apple and LG Innotek revealed to Alpha Economy, “I understand that an incident occurred that could cause serious problems in the trust relationship between Apple and LG Innotek related to the folded zoom actuator.”
The Chinese company expected to step into LG Innotek’s shoes is ICT, a subsidiary of Luxshare. This move is part of Apple’s strategy to enhance the performance of the next-generation folded zoom actuator, potentially improving it from the current 5 times to up to 10 times.
Industry expert Chi-ho Han, a senior expert at NBNtv with a Ph.D. in Public Administration, weighed in on the situation, predicting that LG Innotek might continue supplying 5x folded zoom actuators next year. Dr. Han also analyzed, “As CEO Moon became CEO due to his contribution to the optical business, restoring the supplier status by repairing the relationship with Apple is expected to be one of the most important tasks next year.”
In response to these reports, LG Innotek has vehemently denied any disruptions in its contractual relationship with Apple, stating, “The contractual relationship with Apple is going smoothly as before, and the claim that the company has been eliminated as a supplier for the next-generation folded zoom actuator is completely unfounded.”
Meanwhile, in a separate development, popular leakster suggest that Samsung’s upcoming flagship, the Galaxy S24 Ultra, is changing its optical zoom specifications. Contrary to the trend of increasing optical zoom capabilities, the Galaxy S24 Ultra is rumored to shift from 10x optical zoom to 5x optical zoom, marking a strategic decision by Samsung in the highly competitive smartphone market.
To everyone's surprise, with Samsung S24 Ultra changing from 10x to 5x camera, OPPO has become a brand equipped with the highest power periscope lens, 6x.
— ICE UNIVERSE (@UniverseIce) December 14, 2023
As the tech landscape continues to evolve, these developments highlight the dynamic nature of supplier relationships and the constant need for adaptation in the ever-competitive market. The repercussions of Apple’s decision and Samsung’s strategic shift will undoubtedly be closely watched by industry analysts and consumers alike in the coming months.