Apple 3D sensor supplier will make bank off 2018 iPhones

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VCSEL
The laser in the iPhone X's Face ID could one day transform the speed of broadband.
Photo: Ste Smith/Cult of Mac

The 2018 iPhone lineup could have the same 3D technology as the current flagship handset iPhone X, according to an investment bank encouraging clients to buy stock in the components company.

Piper Jaffray says stock in the manufacturer Lumentum is a good buy and predicts strong growth in the second half of 2018 because of the demand for 3D components. Lumentum (listed as LITE) supplied Apple with the parts to power the iPhone X’s Face ID feature.

In a client note from analyst Troy Jensen obtained by CNBC, Piper Jaffray views Lumentum “as one of the best stocks to own in the optical group given its high relative exposure to fast growing markets such as 3D sensing, ROADMs and industrial laster. We believe 3D sensing demand inflects in the next few months and anticipate LITE will be the primary supplier for Apple.”

It takes several tea leaf readings to get a forecast on what the next generation of devices look like and investment analysts can often make relatively accurate predictions based on activity in the supply chain.

Like a weather forecast though, the picture is constantly shifting. Some analysts believe Apple will roll out three new models this fall, one of which may include an iPhone X Plus.

There were two reports published this week, including one today, hinting at new features, including a boost in RAM and new Apple SIM technology that will include an extreme SIM card slot.

Source: CNBC