KGI Securities


'KGI Securities' Articles Page 2

Ming-Chi Kuo Says 2018 iPhones Unlikely to Have Rear-Facing TrueDepth Camera System

Apple is unlikely to expand its front-facing TrueDepth system for Face ID and Animoji to the rear-facing camera module on iPhones released in 2018, according to oft-reliable Apple analyst Ming-Chi Kuo. In a research note with KGI Securities, obtained by MacRumors, Kuo said the iPhone X's 3D sensing capabilities are already at least one year ahead of Android smartphones. For that reason, he thinks Apple's focus with next year's iPhone models will be ensuring an on-time launch with adequate supply.Based on aforementioned assumptions, we do not expect 2H18F iPhones to come with rear TrueDepth Camera/3D sensing, contrary to market expectations. While we agree that a rear TrueDepth Camera/3D sensing can potentially provide more augmented reality (AR) applications, we note that Apple needs to quickly resolve two issues if it wants 2H18F iPhones to have a rear TrueDepth Camera/3D sensing, namely: (1) the development of AI and ARKit software and an ecosystem, which takes time; and (2) achieving stable shipments and on-time shipping, which are challenging due to the higher spec requirements of rear TrueDepth camera.Even without rear TrueDepth, Kuo believes 2018 iPhone models will unsurprisingly come with other tech spec upgrades to attract consumers. He has a positive view on the prospects of the new iPhone

Ming-Chi Kuo Says iPhone X's TrueDepth Production Issues Stabilizing, Won't Affect Next Year's Models

While the iPhone X has reportedly faced production issues related to the TrueDepth camera, resulting in shipment delays, respected analyst Ming-Chi Kuo said supply of components for the facial recognition system is now stable. In a research note with KGI Securities, obtained by MacRumors, Kuo added that Apple won't "repeat the mistake" of delayed production with next year's iPhone models, which he predicts will "arrive on time" under "stable supply."Apple won't repeat the mistake of supply disruption & delayed production as seen with iPhone X. We believe shipments of new 2H18F iPhones will arrive on time under stable supply in late 3Q18F. And given no major spec upgrade of TrueDepth camera on these new models, we believe Apple will continue to use the same WLO for dot projector and 4P lens of infrared camera as iPhone X. We believe the supply of both components are now stable, leaving no need to switch to other solutions.Kuo expects new iPhone models launching in the second half of 2018 to adopt the same wafer level optics for the TrueDepth system's dot projector, and the same 4P lens for the infrared camera, as the iPhone X. iPhone X pre-orders began on Friday at 12:01 a.m. Pacific Time, and shipping estimates have remained at 5-6 weeks since a few hours after that

Ming-Chi Kuo Says iPhone X Supercycle Won't Really Happen Until 2018

For months, many Wall Street analysts have predicted the iPhone X will drive a significant number of existing iPhone users to upgrade. The latest word from KGI Securities analyst Ming-Chi Kuo, however, suggests the so-called "supercycle" won't truly gain momentum until 2018 due to multiple factors. Namely, Kuo said the TrueDepth camera system's reported production issues will be "significantly addressed" in 2018. He also believes new iPhone models launched in 2018 will enjoy a longer sales period than those unveiled in 2017, with next year's lineup likely to retain many of the iPhone X's appealing features. Here's the excerpt from Kuo's research note obtained by MacRumors today:The market generally refers to 2017 as the super cycle of the iPhone, but we think the real super cycle will be in 2018 for the following reasons: (1) TrueDepth Camera's production issues will be significantly addressed in 2018F; (2) new models launched in 2018F will enjoy a longer sales period than those unveiled in 2017; and (3) the product mix, specifications and designs of new iPhone models from 2018F will be more competitive. We estimate that for 2017, iPhone shipments will come in at 210-220mn units, which should grow to be 245-255mn units in 2018.Kuo estimated that once iPhone X's production issues are solved in the fourth quarter of this year, shipments will "pick up strongly" in the first half of

TrueDepth Camera System is Primary Reason for Slow iPhone X Production

Following a report claiming Apple's suppliers are shipping only about 40 percent of the components originally planned for initial production of the iPhone X, a new report suggests the TrueDepth camera is the primary bottleneck. The word comes from KGI Securities analyst Ming-Chi Kuo, who said the facial recognition system is "far more complex" than those on competing devices, which is making it challenging for Apple to achieve mass production. An excerpt from Kuo's research note obtained by MacRumors:TrueDepth camera may be main production bottleneck of iPhone X ramp. The 3D sensing (TrueDepth camera) on iPhone X is composed of a structured-light system, time-of-flight system and a front-facing camera, which represents a far more complex structure than those of rivals. It will therefore be harder to achieve mass production. While we project iPhone X will see output ramp up meaningfully in mid/ late October, tight supply may only start to ease in 1H18F due to strong demand.Kuo said shipments of iPhone X components will likely ramp up in mid to late October. Given pre-orders begin October 27, with in-store availability starting November 3, all signs point towards the iPhone X being in extremely short supply. Kuo believes iPhone X pre-orders have the potential to exceed 40-50 million units, so it's clear the device won't achieve supply-chain balance for quite

Ming-Chi Kuo Says iPhone X Unlikely to Reach Supply-Demand Balance Until Next Year

While the iPhone X launches November 3, with pre-orders beginning October 27, reliable analyst Ming-Chi Kuo believes Apple's high-end smartphone won't achieve complete supply-demand equilibrium until next year. In his latest research note with KGI Securities, obtained by MacRumors, Kuo said customer demand for the iPhone X won't be fully met until at least the first half of 2018 due to supply constraints.We believe the fullscreen design and facial recognition features will drive replacement demand for the iPhone X. However, due to supply constraints, we expect market demand won't be fully met before 1H18. We revise down our forecast for 2017F iPhone X shipments from 45-50 million to around 40 million units, but we therefore revise up our 2018 iPhone X shipment estimate to 80-90 million units.In fewer words, getting an iPhone X in your hands may prove especially challenging this holiday shopping season. In addition to supply constraints, Kuo said the reason why iPhone X pre-orders won't begin for another six weeks is likely because Apple doesn't want to cannibalize sales of the iPhone 8 and iPhone 8 Plus. iPhone 8 and iPhone 8 Plus pre-orders began at 12:01 a.m. Pacific Time today. The devices launch Friday, September 22. Earlier this week, Kuo said Apple's iPhone X production was less than 10,000 units per day, but the yield may be increasing as Apple ramps up mass production. He anticipated the iPhone X will remain in "severe short supply for a while." Kuo also anticipated that a gold iPhone X would encounter some production problems and initially be

Ming-Chi Kuo: iPhone X Production Currently Just <10K Units Per Day, Blush Gold Color May Launch Later

KGI Securities analyst Ming-Chi Kuo issued a research note to investors today in which he said Apple's current iPhone X production totals less than just 10,000 units per day. For this reason, Kuo anticipates the iPhone X will remain in "severe short supply for a while" following its expected launch later this month. Kuo also anticipates that the so-called "Blush Gold" colored iPhone X will encounter some production problems and will initially be available only in "extremely low volume." He said there is even a chance that the gold version will go on sale at a later date than the other colorways, which are rumored to be silver and black. Here's the excerpt from Kuo's research note obtained by MacRumors:Due to component supply constraints, we estimate current production of the OLED iPhone at less than 10k units per day, which means the model will remain in severe short supply for a while. Furthermore, we estimate that the gold version of the OLED iPhone will encounter some production problems and will initially be available only in extremely low volume. There is even a chance that the gold version will go on sale at a later date than the other versions. However, we believe these shipment delays will have a limited impact on the shares of Apple and its supply chain members.Apple is expected to unveil the iPhone X, a new Apple TV with 4K video, and Apple Watch Series 3 models with LTE at its first-ever event at Steve Jobs Theater tomorrow. Join us at 10:00 a.m. Pacific Time for complete

KGI: All iPhone X Colors Will Have Black Bezels to Ensure 'Better Aesthetic Design'

KGI Securities analyst Ming-Chi Kuo has a new prediction about how Apple will design the front of the "iPhone X." Kuo believes that no matter the color of the device's casing, the front bezels will be black. This will ensure "better aesthetic design," hiding the front-facing camera sensors on the iPhone X's notch, which would otherwise stand out as little black dots on a white bezel. This means that instead of white bezels on a silver or gold iPhone X (as seen above), Kuo argues that black bezels on every version of the new smartphone will better blend into the 5.8-inch OLED display and sensor notch. The iPhone X is expected to come in a limited number of colors, including silver, "blush gold", and black. The same report highlights the "biggest selling point" of the new OLED iPhone X -- 3D sensing -- including a break down of all the components that will be working together on the front-facing sensor bar. From left to right there's the structured light receiver, proximity sensor, ambient light sensor, front camera, and structured light transmitter. Kuo noted that the ambient light sensor is not directly required for 3D sensing, although it can help to improve 3D sensing performance in some capacity. The report further breaks down these sensors, and offers an analysis of the source of each module. The structured light transmitter module was made by LG Innotek, includes a vertical-cavity surface-emitting laser designed by Lumentum, and has half a dozen other individual components: epitaxial wafers, diffractive optical element, wafer level optical, filter, and

Apple Watch Series 3 Unlikely to Support Direct Phone Calls, but VoIP Calling a Possibility

The third-generation Apple Watch, set to launch this fall with LTE support for the first time, is unlikely to support phone calls, KGI Securities analyst Ming-Chi Kuo told investors in a note shared this morning. According to Kuo, while a voice service that replaces the iPhone's calling functionality is "feasible," he believes Apple must first work on improving the "user experience of data transmission." As a result, he says the Apple Watch "probably" won't support traditional phone calls "this year." The watch could, however, support VoIP services like FaceTime and Skype, as FaceTime audio calling is already supported on current Apple Watch models.This has two benefits: (1) negotiations with mobile operators will be more simple and the chances of cooperation with mobile operators will improve; and (2) 3G connectivity can be scrapped, simplifying the antenna design and facilitating internal design. However, we think there is a chance that users may use LTE Apple Watch to access VoIP services, such as FaceTime and Skype.Kuo also says that based on a lack of internal space, the LTE Apple Watch is likely to use an eSIM instead of a physical SIM slot, with the device set up to share the same phone number with an iPhone. He warns that LTE connectivity in the Apple Watch could be limited to specific countries and markets as not all mobile operators support that particular business model. Rumors have already suggested that the major carriers in the United States, including Verizon, AT&T, and T-Mobile, will support and sell the upcoming LTE Apple Watch. Though Apple

Apple Pressing LG to Add OLED Display Production for 2018 iPhone, Limiting Samsung's Leverage

Amid reports Apple is investing billions of dollars to help LG begin production of OLED displays for future iPhones, KGI Securities analyst Ming-Chi Kuo has issued a new report sharing his take on the situation. According to Kuo, the OLED display panel for this year's "iPhone 8" has been the "single most troublesome component for Apple in terms of bargaining power," as Samsung is currently the only company with design and production capabilities to make the displays. To counter Samsung's advantage, Apple is working hard to support LG's efforts to ramp up similar expertise and capabilities.We think Apple is therefore committed to having LGD geared up for its OLED iPhone display business in 2018 as it seeks to reduce supply risks. Even though LGD may likely start off with minimal initial penetration in 2018 (we estimate no more than 4-6%), the effort, with the full commitment of both Apple and LGD, will help LGD mature during the process and steadily gain supply share from 2019 onward. This will in turn continuously boost Apple’s bargaining power on OLED prices.Kuo predicts LG will capture 10–20 percent of iPhone OLED display production in 2019 and up to 20–30 percent in 2020, helping to diversify Apple's sourcing and limit Samsung's leverage. While LG will have expertise at production of the display panels themselves, Kuo predicts Foxconn subsidiary General Interface Solution (GIS) will be brought on board to assist with lamination processes. GIS would also offer expertise in production troubleshooting and vertical integration with Foxconn, so it would be an ideal

Ming-Chi Kuo Says Apple Likely to Unveil 10.5" iPad Pro and Touchscreen Siri Smart Speaker at WWDC

Prominent KGI Securities analyst Ming-Chi Kuo has released a "2017 WWDC highlights" report, outlining his expectations for next month's keynote event. While he expects the typical previews of the next versions of iOS, macOS, watchOS, and tvOS, he also predicts we will see several hardware-related announcements. One major debut Kuo expects to see is the long-rumored 10.5-inch iPad Pro, which he says has a greater than 70 percent chance of debuting at the event based on the timing of production ramp-up, which he sees as happening at the end of the current quarter. In line with previous rumors, Kuo believes the 10.5-inch iPad Pro will have a similar form factor as the current 9.7-inch model, squeezing in a larger display thanks to narrower bezels.The newly designed 10.5” iPad Pro will have a similar form factor to the 9.7” model, but will feature a larger display thanks to narrow bezels. The new design should improve the user experience and help gain traction in the corporate/ commercial sectors. We forecast 10.5” iPad shipments of 5.0-6.0mn units in 2017F, accounting for 15% of total 2017F iPad shipments.Kuo also reiterates his belief that there is a greater than 50 percent chance Apple will unveil its Siri smart speaker at WWDC. He previously said that the speaker may not actually launch until later in the year, but an announcement at WWDC would give developers time to begin building support for the product.In our April 28 Insight report (“Apple’s first home AI product to see cyclical shipments of over 10mn units; main competitor is Amazon Echo”), we offered

Apple's Siri-Based Smart Speaker Has 'Over 50% Chance' of Debuting at WWDC in June

Apple's widely rumored Siri-based smart speaker and home hub has an "over 50 percent chance" of being announced at WWDC, scheduled for June 5-9, according to often-reliable Apple analyst Ming-Chi Kuo of KGI Securities. The device is rumored to have a "Mac Pro-like" concave design (Image: iFunnyVlogger) Kuo said Apple's smart home product will likely launch in the second half of 2017 and cost more than the Amazon Echo, $179. The device will supposedly support AirPlay with "excellent acoustics performance" from one woofer and seven tweeters. Kuo said its performance will be similar to the iPhone 6/6s. An excerpt from Kuo's research note obtained by MacRumors:We believe there is an over 50% chance that Apple will announce its first home AI product at WWDC in June and start selling in the [second half of 2017] in order to compete with the new Amazon Echo models to be launched […] We expect Apple’s first home AI product will have excellent acoustics performance (one woofer + seven tweeters) and computing power (similar to iPhone 6/6S AP). Therefore the product is likely to be positioned for: (i) the high-end market; (ii) better entertainment experience; and (iii) higher price than Amazon Echo.Last week, leaker Sonny Dickson likewise said Apple's smart speaker could be announced as early as WWDC. He said the device will run a variation of iOS with unspecified Beats technology, in addition to a Mac Pro-like concave top with built-in controls and speaker meshing covering the majority of its surface. Apple's plans for a smart home device and Amazon Echo competitor were

Ming-Chi Kuo Says All 2017 iPhones Will Have Lightning Connectors With USB-C Fast Charging

All three iPhones rumored to be launched in 2017 will retain Lightning connectors with the addition of USB-C Power Delivery for faster charging, including an all-new OLED model with a larger L-shaped battery and updated 4.7-inch and 5.5-inch models, according to KGI Securities analyst Ming-Chi Kuo. An excerpt from his latest research note obtained by MacRumors:New 2H17 models may all support fast charging. We believe all three new iPhones launching in 2H17 will support fast charging by the adoption of Type-C Power Delivery technology (while still retaining the Lightning port). A key technical challenge lies with ensuring product safety and stable data transmission during a fast charge. In order to achieve that goal, we think Apple will adopt TI's power management and Cypress's Power Delivery chip solutions for the new iPhone models. We note the OLED version may have a faster charging speed thanks to a 2-cell L shaped battery pack design.Kuo expects Apple to retain the Lightning port given it has a slightly slimmer design compared to a USB-C port, to sustain MFi Program licensing income from Lightning accessories, and because he believes USB-C's high-speed data transmission is "still a niche application" for iPhone. The 12.9-inch iPad Pro already supports USB 3.0 speeds and fast charging with a Lightning to USB-C cable, while iPhones and other devices with a Lightning connector still transfer at USB 2.0 speeds. Kuo's prediction comes just two days after The Wall Street Journal seemingly reported that at least one upcoming iPhone model would have a USB-C port

iPhone 8 Will Include 'Revolutionary' Front Camera With 3D Sensing Abilities

The rumored "iPhone 8" with an edge-to-edge OLED display will gain a "revolutionary" front-facing camera system that consists of three modules that enable fully-featured 3D sensing capabilities, according to new predictions shared by KGI Securities analyst Ming-Chi Kuo. The upgraded camera system will be fueled by PrimeSense algorithms, which Apple acquired in 2013. The three modules include an existing front camera module of current iPhones, an infrared transmitting module, and an infrared receiving module. Using these advancements, the camera will be able to find the location and depth of objects placed in front of it, with potential applications including facial and iris recognition. The camera will function by merging the depth information captured by the IR transmitting and receiving modules with the traditional 2D images captured by the front camera. This not only could be used for the iPhone 8's long-rumored iris recognition feature, but even in some gaming applications -- and future AR/VR experiences -- where users could place their own 3D-scanned face in the game using a quick selfie. Today's news of an overhaul to the front-facing camera of the iPhone 8 follows speculation surrounding the potential of Apple dropping Touch ID and instead focusing on either 3D facial recognition or iris scanning as the device's main security feature. JPMorgan analyst Rod Hall has stated that facial recognition could be a more secure alternative, and help increase Apple Pay adoption with retailers and financial institutions. According to Kuo, this three-module

iPhone 8 Said to Pack Battery Capacity of Current 5.5-Inch Model Into 4.7-Inch Form Factor

The so-called "iPhone 8" will adopt a higher-cost stacked logic board design to support longer battery life, according to KGI Securities analyst Ming-Chi Kuo. Kuo said the stacked logic board, also known as a "substrate-like PCB mainboard," will result in the "iPhone 8" with an OLED display having similar dimensions to a 4.7-inch iPhone, yet comparable battery life to a 5.5-inch iPhone. He expects the device to have around a 2,700 mAh L-shaped two-cell battery pack.As battery material tech isn’t likely to see major breakthroughs in the next 3-5 years, mainboard area can only be reduced via stacked SLP, which makes space for larger battery and extended usage time. Thanks to stacked SLP, we expect the OLED iPhone to have similar dimensions to a 4.7” TFT-LCD iPhone, and have comparable battery capacity (equipped with around 2,700 mAh L-shaped 2-cell battery pack) to a 5.5” TFT-LCD iPhone. The battery life of the OLED iPhone could be better than that of the 5.5” TFT-LCD model as OLED panels are more energy-efficient than their TFT-LCD counterparts.Kuo added that the battery life of "iPhone 8" with an OLED display could be better than that of a 5.5" model with a traditional LCD display, as OLED panels are more energy-efficient than their LCD counterparts. For comparison, the iPhone 7 has a 1,960 mAh battery and the iPhone 7 Plus has a 2,900 mAh

All Three New 2017 iPhones to Feature Wireless Charging

Apple is widely rumored to launch three new iPhones this year, and KGI Securities analyst Ming-Chi Kuo now claims that all of them will feature wireless charging. iPhone 8 concept by UI/UX designer Moe Slah Kuo said wireless charging increases the internal temperature of smartphones, so he expects the rumored iPhone 8 with an OLED display and glass casing to have a new 3D Touch module with "additional graphite sheet lamination" in order to prevent the device from malfunctioning due to overheating. An excerpt from Kuo's research note obtained by MacRumors:While we don’t expect general users to notice any difference, lamination of an additional graphite sheet is needed for better thermal control and, thus, steady operation; this is because FPCB is replaced with film, which is more sensitive to temperature change of the 3D touch sensor in OLED iPhone.The new 3D Touch module could be up to $5 more expensive for Apple to procure per phone. While that is a minimal increase, it lends further credence to a report claiming the high-end iPhone 8 could cost upwards of $1,000 in the United States due to a significant redesign and the use of premium parts. Kuo previously said Apple will switch to all-glass casing for next year's entire iPhone lineup, including the more iterative 4.7-inch iPhone 7s and 5.5-inch iPhone 7s Plus, in order to support wireless charging. It remains unclear if the wireless charging will be based on long-range or inductive technologies

Apple Exploring Two-Step Touch ID and Facial Recognition System for iPhone 8

Noted KGI Securities analyst Ming-Chi Kuo released a research report today in which he outlined further expectations for Apple's 2017 iPhone, including new biometric identification technology as well as the necessity of a new design to provide better structural support for a flexible OLED display with 3D Touch capability. Apple may switch to a film sensor from the current FPCB sensor in order to provide better 3D Touch user experience, as a film sensor offers higher sensitivity. Also, we expect the new OLED iPhone will come with a flexible OLED panel. To avoid deforming the form factor of the flexible OLED panel from touch operation pressure, a metal structural part will be placed under the film sensor to provide more robust structural support.Kuo also believes Apple is developing a new Touch ID technology for its next iPhone "to complement its full-screen (zero bezel) form factor design and to enhance transactions security". According to Kuo, the existing "under glass" design of fingerprint recognition doesn't meet the requirements of full-screen form factor designs, therefore an "under panel" placement is required. As a result, Kuo says Apple aims to switch from the current capacitive-type to an optical-type system. Despite the technology still being in the early stages of development and the fact that OLED panel makers will have to provide bespoke designs for the system to work, Kuo believes Apple has the bargaining power to request the customizations. Notably, Kuo believes the fingerprint recognition system will "ultimately be replaced by a facial recognition

New 15-Inch MacBook Pro With Kaby Lake and 32GB of Desktop-Class RAM Coming Later This Year

Apple will release updated Mac notebooks with Intel's next-generation Kaby Lake processors later this year, according to the latest research note from KGI Securities analyst Ming-Chi Kuo. Kuo said new 12-inch MacBook models with Kaby Lake processors will enter mass production in the early second quarter, which starts in March, and noted a 16GB of RAM option could be added—presumably as a high-end or built-to-order configuration. The two current 12-inch MacBook configurations include 8GB of RAM. Likewise, Kuo said new 13-inch and 15-inch MacBook Pro models with Kaby Lake processors will start mass production in the early third quarter, which starts in July. The research note did not specify how much RAM these models will have, but 16GB could remain the limit due to the restrictions of current memory designs. Interestingly, Kuo also mentions a "15-inch MacBook" that will include 32GB of RAM and enter mass production in the early fourth quarter, which starts in September. He said this model will be "the most significantly redesigned product this year," and he believes it will adopt desktop-class RAM to satisfy high-end users. Given the high-end specifications, it is likely that this 15-inch MacBook would be part of the MacBook Pro lineup, but Kuo did not specify. Beyond faster processors and increased memory, Kuo said most other specifications and the design of all of the notebooks will be similar to equivalent models released in 2016. Kuo believes the new Kaby Lake notebooks will be power efficient, which may positively affect shipments. He estimates that

Size of Apple's New 'High End' iPad Pro Model Said to be Between 10 and 10.5-Inches

Noted analyst Ming-Chi Kuo has released a new research report underlining his expectations for the future of Apple's iPad line-up, with slightly revised predictions for a new "high-end" middle-size tablet to be released later this year. According to Kuo, Apple is planning to introduce three iPads in 2017: a 12.9-inch iPad Pro 2 and a "low-cost" 9.7-inch iPad, along with a new bezel-free, mid-size model in the range of between 10 and 10.5 inches. We note the 12.9" model will be the second generation of the existing 12.9" iPad Pro, the 10-10.5" model will be the high-end model equipped with a narrow bezel design, and the 9.7" model will be the low-priced option. The former two models will have an A10X chip manufactured by TSMC (2330 TT, NT$183.5, N), while the latter comes with an A9 chip made by Samsung LSI. Although we estimate iPad shipments in 2017 will drop again YoY to 35-37mn units, we except the decline to narrow to 10% from 2016's roughly 20%, given that the 10-10.5" model may see more demand from commercial/enterprises and tender markets, while the low-priced 9.7" model may have a greater shipment contribution and likely account for 50-60% of total shipments of new iPads. Last August, Kuo's expectation for Apple's mid-size model was a more definite 10.5 inches. His latest revised prediction of 10-10.5 inches suggests Apple is still testing multiple tablets and has yet to settle on a final size. Interestingly, Japanese site Mac Otakara released two separate reports last year stating that the tablet will be 10.1 inches and 10.9 inches, so while the former size

4.7-Inch iPhone to Feature Wireless Charging Next Year

Apple's next-generation 4.7-inch iPhone will feature glass casing with wireless charging, according to the latest research note from KGI Securities analyst Ming-Chi Kuo obtained by MacRumors.Our rationale is as follows: (1) the OLED model may trigger replacement demand among high-end users given its completely all-new-design form factor and notably superior specs in comparison to the TFT-LCD models; and (2) the new 4.7” iPhone, featuring glass casing and wireless charging, looks well positioned to tap replacement demand at the entry level.Kuo previously said all new iPhones are "likely" to support wireless charging next year, so 5.5-inch and all-new OLED models will likely gain the feature as well in addition to the now-confirmed 4.7-inch model. Kuo believes Apple will switch to glass casing for next year's entire iPhone lineup in order to support wireless charging, with Pegatron being the exclusive supplier of the new 4.7-inch iPhone and a wireless charger expected to be included with at least some models. The wireless charger will allegedly have wider availability by 2018. The new 4.7-inch iPhone and an OLED model featuring a "completely all-new-design form factor and notably superior specs" are predicted to drive "potentially unprecedented replacement demand" from smartphone users. Kuo forecasts Apple could sell 120-150 million new iPhones in the back half of 2017, topping an iPhone 6 sales record.To our understanding, while demand visibility in 2H17F is as yet unclear and presumed pull-in demand may change anytime, upstream suppliers may be around now setting

iPhone 8 to Feature All-Glass Casing in Order to Support Wireless Charging

Apple will switch to an all-glass casing for next year's entire iPhone lineup in order to support wireless charging, with Pegatron being the exclusive supplier of the wireless charger. That's according to the latest research note by KGI Securities analyst Ming-Chi Kuo obtained by MacRumors. According to Kuo, the transition from metal to glass casing is key if Apple is to introduce a wireless charging feature in the 2017 iPhone. While patented engineering solutions do exist for wirelessly charging devices with metal cases, issues with wireless frequency tolerances for metal alloys can limit the speed at which charging takes place. On top of that, it is widely believed that Jony Ive has wanted to introduce an iPhone that looks like a single sheet of glass for several years. iPhone concept image via ConceptsiPhone We believe one of the reasons why new iPhones will switch from metal casing to glass casing is to support wireless charging. In order to ensure a superior performance, we believe it is most appropriate for EMS suppliers to develop and make the wireless charger because then a comprehensive test can be conducted. As Hon Hai needs to deploy most resources to develop and produce OLED iPhone, we expect Pegatron will be the exclusive supplier of the wireless charger.Kuo remains uncertain whether a wireless charger will be bundled with all new iPhones, but expects at least some models to be next year, with wider availability by 2018. Kuo last week claimed that Apple will release 4.7-inch and 5.5-inch model iPhones with LCD screens as well as an all-new OLED model