Apple’s new iPhone 17 models (Image courtesy of Yonhap)
SEOUL, Oct. 8 (Korea Bizwire) — South Korea’s leading electronic component makers, Samsung Electro-Mechanics and LG Innotek, are expected to post stronger-than-expected earnings in the third quarter, buoyed by robust demand for Apple’s new iPhone 17 and a strategic shift toward higher-margin products.
According to market tracker Yonhap Infomax, the consensus estimate for LG Innotek’s operating profit in the July–September period stands at 173 billion won ($126 million), up 32.7 percent from a year earlier.
The company is reportedly supplying camera modules for the entire iPhone 17 lineup, including the premium Pro and Pro Max models equipped with “folded zoom” telephoto lenses—a compact optical design enabling powerful zoom while minimizing lens protrusion.
Analysts said the growing share of advanced, higher-value components has bolstered LG Innotek’s profitability. The firm also benefits from expanded capacity at its new plant in Vietnam, which more than doubled its total camera module output.
Under its dual-production strategy, high-end modules are made domestically, while standard models are produced in Vietnam to enhance cost efficiency.
Samsung Electro-Mechanics’ multilayer ceramic capacitors (MLCCs)
Samsung Electro-Mechanics is also forecast to deliver improved earnings thanks to rising demand for multilayer ceramic capacitors (MLCCs) used in artificial intelligence (AI) servers and automotive electronics. AI servers require roughly 10 times more MLCCs than traditional servers, while electric and autonomous vehicles use more than 30,000 units per car.
The company’s third-quarter operating profit is projected to rise 10.3 percent on-year to 248 billion won, with revenue expected to grow 8.6 percent to 2.84 trillion won. Analysts predict the MLCC-focused component division will post an operating margin of 14.4 percent — its highest in three years.
Kiwoom Securities analyst Kim Sowon noted that the business is entering the early stages of an MLCC upcycle, driven by booming demand for AI infrastructure and automotive electronics. “The component division will likely lead performance improvement as plant utilization rises to 95 percent on strong seasonal demand and AI-driven momentum,” Kim said.
Kevin Lee (kevinlee@koreabizwire.com)
