Apple creates $820 million partnership with LG Innotek

Apple has invested $820 million in a new partnership with LG Innotek to supply 3D sensing camera modules for future iPhones and iPads. The partnership includes an upfront payment of $820 million to establish production lines for components and assembly.

$820 million

It is anticipated that this large investment in LG's capacity will remove bottlenecks with the production of camera modules that limited the supply of the iPhone X, from Apple's other TrueDepth Camera supplier, Finisar, who received a separate $390 million investment recently.

Apple is also working with LG on screens for desktop Thunderbolt displays, and OLED displays for iPhones.

Apple continues to invest in its supply chain as CEO Tim Cook grows increasingly frustrated with bottlenecks in capacity from certain suppliers, holding up the assembly and availability of completed products.

Apple is set to extend its partnership with LG in an effort to de-throne Samsung as its number one supplier, and competitor.

Until next time,

Xavier Zymantas


XYZ Media Group

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