Apple Placing 'Massive' Orders From Leading 3D Sensing Laser Supplier Ahead of iPhone 8 Launch

Apple supplier Lumentum has received over $200 million in bookings for the rest of the 2017 calendar year, related to components for vertical-cavity surface-emitting lasers (VCSEL), believed to be aimed at Apple's advanced 3D sensing camera on the iPhone 8. The bookings represent a noticeable increase in revenue for the supplier, in comparison to a reported $5 million in 3D sensing revenue during its last fiscal quarter.

Because of this, LoupVentures analyst Gene Munster believes that the September launch of the iPhone 8 will see an increase in the number of iPhones with advanced 3D sensors supporting augmented reality applications. Lumentum is believed to be one of around three companies supplying Apple with VCSEL components, as well as Finisar.

iphone 8 sensor bar mockup

iPhone 8 mockup by Benjamin Geskin

It's predicted that most of Lumentum's $200 million VCSEL order, "if not the entire order," will be for Apple, leading to further confirmation that AR will be a "focus feature" of the iPhone 8. This "massive" uptick in production has seen Lumentum increase its VCSEL production capacity by 25 to 30 percent more than it had projected as recently as the last quarter.

In the June-qtr, Lumentum recorded $5M in 3D sensing revenue, but more impressively they received over $200M in bookings in the quarter, which they believe will all be shipped by CY17. We believe the majority, if not they entire order, is all being shipped to Apple. We believe these comments further confirms 3D sensing (and in-turn AR applications) will be a focus feature in the next iPhone.

In addition, Lumentum highlighted they have increased VCSEL laser capacity by 25 – 30% from what they anticipated only one quarter ago. Given the uptick in Management’s demand forecast, we believe advanced 3D sensing capabilities will be integrated in more iPhones that what most were previously expecting.

Furthermore, LoupVentures believes that the iPhone launch "remains on track" for release in September, with a total 133 million units of new iPhone devices shipping in the second half of 2017. Of those, 55 million (43 percent) will have VCSEL components, related to the next-generation OLED iPhone 8 device. Next year, as more VCSEL production is added, it's predicted that as much as 85 percent of new iPhones shipped in the second half of 2018 will support 3D sensing abilities.

For the other two devices coming in 2017 -- the "iPhone 7s" and "iPhone 7s Plus" -- it's not expected that 3D sensing features supported by advanced VCSEL components will be added. The iPhone 8 will remain the central showpiece device in the new line of iPhones in 2017, particularly with the help from developers creating new experiences in apps fueled by ARKit.

Recent production ramp-up stories have pegged all three new iPhones as entering volume production ahead of their launch in September. Currently, it's expected that the LCD iPhone 7s and iPhone 7s Plus will be fairly easy for customers to obtain, but the OLED iPhone 8 "could fall short of demand" and be difficult to purchase for the first few months of its availability.

Related Forum: iPhone

Popular Stories

Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Max Battery Capacity Leaked

Thursday July 3, 2025 5:40 am PDT by
The iPhone 17 Pro Max will feature the biggest ever battery in an iPhone, according to the Weibo leaker known as "Instant Digital." In a new post, the leaker listed the battery capacities of the iPhone 11 Pro Max through to the iPhone 16 Pro Max, and added that the iPhone 17 Pro Max will feature a battery capacity of 5,000mAh: iPhone 11 Pro Max: 3,969mAh iPhone 12 Pro Max: 3,687mAh...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...
apple silicon mac lineup 2024 feature purple m5

Apple's Upcoming Macs Listed in New Report

Thursday July 3, 2025 9:09 am PDT by
AppleInsider's Marko Zivkovic today shared a list of alleged identifiers for future Mac models, which should roll out over the next year or so. The report does not reveal anything too surprising, but it does serve as further evidence that Apple is seemingly working on new models of every Mac, including the MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro. Apple is...
iPhone 17 Pro Lower Logo Magsafe

iPhone 17 Pro's New MagSafe Design Revealed in Leaked Photo

Wednesday July 2, 2025 8:37 am PDT by
The upcoming iPhone 17 Pro and iPhone 17 Pro Max are rumored to have a slightly different MagSafe magnet layout compared to existing iPhone models, and a leaked photo has offered a closer look at the supposed new design. The leaker Majin Bu today shared a photo of alleged MagSafe magnet arrays for third-party iPhone 17 Pro cases. On existing iPhone models with MagSafe, the magnets form a...

Top Rated Comments

44267547 Avatar
103 months ago
This article gives a good indication of what we are going to expect. This iPhone launch is going to be massive. Its likely going to shatter any iPhone sales in the past. Only weeks away.
Score: 11 Votes (Like | Disagree)
H2SO4 Avatar
103 months ago
So much potential with this ability.

Remember all those guys who said they wouldn't buy an iPhone 8 without touch ID?

Well what did you own before it existed ? Add to that if Facial recognition works then be happy!
('https://forums.macrumors.com/threads/apple-placing-massive-orders-from-leading-3d-sensing-laser-supplier-ahead-of-iphone-8-launch.2060839/reply?quote=24881194')
That's like saying I wouldn't by a car with out electric windows now. Well sure I had one before but seriously.....?
Score: 8 Votes (Like | Disagree)
djcerla Avatar
103 months ago
... and what are competitors rushing to develop? Under-the-screen touch sensors!

Once again, all taken pants down and looking the other way around.

Apple's advantage in AR will be so ridicolously huge it will not even be funny.
Score: 7 Votes (Like | Disagree)
Born Again Avatar
103 months ago
So much potential with this ability.

Remember all those guys who said they wouldn't buy an iPhone 8 without touch ID?

Well what did you own before it existed ? Add to that if Facial recognition works then be happy!
Score: 6 Votes (Like | Disagree)
AngerDanger Avatar
103 months ago
Apple supplier Lumentum has received over $200 million in bookings for the rest of the 2017 calendar year, related to components for vertical-cavity surface-emitting lasers (VCSEL),
LASIK Eye Surgery: there'll be an app for that.

Score: 6 Votes (Like | Disagree)
Mansu944 Avatar
103 months ago
This seems to be getting better and better...I am now excited.
Score: 5 Votes (Like | Disagree)