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Apple Ramping up iPhone-5S Manufacturing… ⭐⭐⭐⭐🍎🍎

June 8, 2013

Here’s an indication that Apple may be on the verge of ramping up iPhone 5S manufacturing. According to a news report by a Korean newspaper, Apple’s camera supplier LG Innotek is said to have put on hold as much as 80% of its camera module output. The paper claims the change is a result of "weak iPhone 5 sales", but that’s an incorrect assumption because the iPhone-5 back and front cameras are made by Sony and Omnivision, respectively.

LG Innotek is listed as the official Apple supplier as it makes the iPhone 4 camera, but its name doesn’t come up in teardown analysis of any of Apple’s latest mobile products…

According to South Korea’s national daily newspaper Munhwa Daily (translated to English by BrightWire), Apple asked LG Innotek, a unit of LG Electronics, to expand its production capacity to ten million units per month in the second half of 2012, covering thirty percent of the expansion costs. The story claims approximately 75%-to-85% of LG Innotek’s camera module production line has been non-operational for the last few months, with sources quick to blame "lower than expected iPhone 5 sales".

For starters, the timing of LG Innotek’s production deceleration of the iPhone-4s Camera Module, coincides suspiciously with the September 2012 release of the iPhone 5. A teardown analysis by Chipworks has revealed that the iPhone 5 uses an eight-megapixel iSight sensor by Sony (as seen below) and a 1.9-megapixel FaceTime HD camera by Omnivision, a long time supplier of CMOS sensors for iOS devices.

Another reasonable explanation: when/if the iPhone 5S comes out the Fall, 2013, the 32-month old iPhone 4, now retails for $450 off-contract, should be "retired" to make way for the iPhone 4S, as the new entry-level option.

As LG Innotek’s camera production, assembles the 5-megapixel camera for the iPhone 4, it is expected the handset’s "retirement" to negatively impact LG Innotek’s camera production output.

Rumor ID: iPhone-5s Ramping Up Production.

Rumor Rating: β­β­β­πŸ“ Viability Rated by Jimmy

Rumor Viability Comment: Makes sense to me. What do you think.

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