iPhone 6 sales to boost Korean parts suppliers

The launch of Apple's iPhone 6 and iPhone 6 Plus will give a much-needed sales boosts to major Korean suppliers for the fourth quarter, reports ZDNet Korea's Cho Mu-hyun.
Written by Cho Mu-Hyun, Contributing Writer

Local analysts have said that the new iPhones meet market expectations, and will positively affect sales of Korean conglomerates such as LG, SK, and Samsung, which provide various components to Apple's new flagship devices.

The first half of 2014 has been rather tough for parts makers overall, due to the slowdown of growth in the smartphone market and the lack of "killer" products, said industry sources from various suppliers.

LG Group is likely to be the biggest benefactor, as its affiliates, LG Display and LG Innotek, supply display panel and camera modules for the new phones, respectively.

LG Display, as with previous versions, is providing Apple's new offerings with liquid crystal displays, while the iPhone 6's optical image stabiliser and 8-megapixel camera modules were made by LG Innotek, said sources.

Apple Watch, to be launched early next year, will also boost LG Display, which provides the curved displays.

The introduction of 128 gigabytes of storage to iPhones will increase shipment volumes from Korea's memory chip maker SK Hynix, which supplies Apple with its NAND flashes.

SK Hynix and Samsung Electronics also provide the dynamic random access memory used in the phones.

Samsung Electronics will see a slight improvement in the revenue of its System LSI division, its contract and logic chip-making department, as it makes the newly unveiled A8 application processors for Apple, along with Taiwanese chip giant TSMC.

Source: ZDNet.co.kr

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