In the global smartphone market, the quality of CMOS image sensors (CIS) directly affects the performance of mobile phone camera functions. As an industry leader, Sony has long been a major supplier to Apple's CIS. However, as demand surged, Sony's production capacity began to look stretched. This shift provides an opportunity for Samsung CIS to enter Apple's supply chain, and it also heralds a major change in the CIS market landscape.
Sony's capacity challenge
According to market research firm Yole Développement, Sony's share of the global CIS market is as high as 40%, and it has a near monopoly in the field of high-end smartphones, especially in the field of high-end smartphones. However, in recent years, with the continuous improvement of smartphone camera pixels and the popularity of multi-camera configurations, Sony's production capacity has begun to be challenged. Especially in 2023, Sony failed to meet Apple's needs in a timely manner, resulting in the iPhone 15 release date being forced to be postponed.
Samsung's opportunity
Samsung Electronics' System LSI Division has demonstrated strong competitiveness in the CIS field with its advanced ISOCELL technology and three-layer wafer stacking technology. TheElec's report states that Apple is conducting final quality tests on Samsung's CIS, which are expected to be used in the main camera of the next iPhone. If the test is successful, Samsung will not only become Apple's second-largest CIS supplier, but also expect to further expand its market share in the future.
Figure: Sony's CIS production capacity is tight, and Samsung has become the biggest beneficiary of Apple's supply chain
The driving force of technological innovation
Samsung's three-layer wafer stacking technology is the key to its favor with Apple. Compared to traditional double-layer stacking, this technology can significantly increase transfer speeds, reduce latency, and bring higher performance and lower power consumption. According to Samsung's official data, its ISOCELL 3.0 technology has made a breakthrough in pixel binning and image processing, with the pixel size reduced to 0.56 microns and the number of pixels exceeding the 200 million mark.
Changes in the competitive landscape of the market
Apple's introduction of Samsung as a CIS supplier will have a profound impact on the competitive landscape of the market. First of all, this will break Sony's monopoly position in the high-end CIS market and provide more market opportunities for Samsung. Second, the technology competition between the two companies will drive technological advancements across the industry, ultimately benefiting consumers. Finally, the diversification of the supply chain will also improve the market adaptability and risk resilience of Apple products.
Summary
Sony's tight CIS production capacity provides Samsung with an opportunity to enter Apple's supply chain, a change that will have a significant impact not only on both companies, but also on the CIS market as a whole. Samsung's participation will intensify market competition, promote technological innovation, and also bring a more stable and diversified supply chain to Apple. As technology continues to advance, we look forward to the collaboration between Apple and Samsung to bring consumers a higher quality product experience."
