Rumors that Apple will not be upgrading the resolution of its rear camera on the next version of their flagship iPhone caused camera module supplier Largan Precision’s stock take a significant dip yesterday, bottoming out after a near 7% drop shortly after noon.
The mobile device camera supplier’s shares closed at NT$1,135 after rebounding from its intraday low of NT$1,105, losing NT$45, or 3.81 percent.
The publication cites Nomura Securities as saying Largan’s lagging performance is being caused by rumors that Apple will keep it’s back-facing camera at 8 megapixels on its next-gen handset, instead opting for improved image stabilization. Some industry observers had been anticipating a 16MP upgrade.
Apple first debuted the 8MP rear camera on its iPhone 4S in 2011, and has retained the same megapixel count in its 5/5s/5c handsets. While the iPhone 5s retained the 8MP count, Apple improved the performance of the camera significantly via increased pixel size, a new dual LED flash, larger aperture, and software improvements.
The China Post says Largan remains the leader in a crowded field, as the company is among the few that can cope with the complex camera module required by Apple.
Nomura Securities raised the target price of Largan shares to NT$1,413, while Bank of America Merrill Lynch raised its target price to NT$1,440.