Apple's New iPhone Release Imminent: Earnings Turnaround Expected for Domestic Parts Suppliers
Expectations for the iPhone 18 and foldable models boost core parts stocks like LG Innotek. Selective investment in high-value components is advised amidst cost pressures.
Apple's Imminent iPhone Launch and the Leap of the Domestic Value Chain
As of August 2, 2026, market attention is heavily focused on Apple's upcoming iPhone 18 series and its first-ever foldable iPhone, slated for unveiling this September. With the integration of enhanced AI features and form-factor innovations, expectations for a smartphone replacement super-cycle are mounting. This robust product demand outlook is revitalizing the previously sluggish IT parts industry, serving as a strong momentum for earnings turnaround among major domestic companies that exclusively supply core components.
LG Innotek and Display Makers: Explosive Demand for High-Value Parts
According to recent supply chain trends, Apple plans to significantly upgrade the camera performance of its new iPhone Pro lineup. Consequently, LG Innotek is expected to secure substantial orders for high-end camera modules equipped with variable apertures, leading to a distinct earnings improvement in the second half of the year. Institutional and foreign investors' buying trends are already reflecting this anticipation.
Furthermore, the premium OLED panels adopted for Apple's first foldable device and the Pro lineup are dominated by Samsung Display and LG Display. While Chinese competitors like BOE continue to face quality issues, domestic firms are maintaining a technical super-gap through investments in 8.6-generation IT OLED fabs. This is expected to materialize into a trickle-down effect across the related materials and components ecosystem, including companies like Duksan Neolux and BH.
Cost Increase Risks (Chipflation) and Investment Strategies
Despite the positive outlook, there are variables to consider. Analysts predict a significant increase in the Bill of Materials (BOM) for the new iPhones compared to predecessors, driven by price hikes for TSMC's 2nm A20 Pro chips and skyrocketing memory semiconductor prices (dubbed 'RAMageddon'). The fact that Apple is strongly demanding price cuts from panel and module suppliers to defend its profitability is a crucial risk factor for investors in related parts stocks.
- Checkpoint 1: The actual scale of iPhone production increases in the second half and whether domestic suppliers can maintain their market share.
- Checkpoint 2: The ability of parts suppliers to defend profitability through an improved mix of high-value products (OLED, high-end cameras) amidst Apple's pressure to reduce unit costs.
- Checkpoint 3: The initial market response to the foldable iPhone scheduled for release in the latter half of 2026 and the intensity of benefits for related parts stocks (hinges, substrates, etc.).
In conclusion, the momentum of Apple's new iPhone is acting as a powerful upward catalyst for domestic IT parts stocks. However, rather than a simple thematic approach, a selective investment strategy focusing on core value chains (cameras, advanced semiconductor substrates, OLED materials/parts) that have built technological moats and can defend selling prices is more necessary than ever.