Well-informed analyst Ming-Chi Kuo has reported back to investors in a new note, addressing Apple's plans for 5G and the new antenna design in the 2020 iPhone.
The TFI Securities analyst believes that Apple's new 5G iPhones will account for between 15 and 20 percent of total shipments in the second half of 2020. He repeated previous statements that all three iPhone models will most likely be equipped with a 5G chip from Qualcomm. According to his forecast, these models will support both mmWave and sub-6GHz bands. This should guarantee an improved 5G experience in the USA. The new antenna technology will be particularly important here - writes Kuo. But the new version of the liquid crystal polymer is also said to pose a risk, as there are currently only a few suppliers for it. Demand for LCP FPC hardware is said to be well over 220 million units.
Sought-after material for antenna technology
According to Kuo, 5G iPhones require three LCP FPC units while 4G devices only need one. It is also expected that the upper antenna in the iPhone 12 will also use LCP FPC. The current generation will be equipped with modified polyamide (MPI) FPC. But that's not all. Demand for this new antenna design is expected to continue to rise in 2020, as Kuo says the new iPads and Apple Watch models will also be switched over. Kuo writes:
"The biggest challenge for Apple's FPC procurement strategy in 2020 is to find new LPC FPC suppliers that can offer massive stable supplies alongside Murata."
Currently, Avary/ZDT could be a solution, as the company has a development lead in this area.
"Currently, only Avary/ZDT could simultaneously use Panasonic and Azotek's LCP materials for LCP FPC production at new LCP suppliers selected by Apple. We believe this will reduce procurement risk and costs." – said Kuo.
The new LCP antenna design offers a number of advantages. Among other things, it can operate without restrictions at different temperatures and prevents reception losses, which is essential for 5G technology. This and more makes LCP a sought-after material for antenna technology. (Photo by Skorzewiak / Bigstockphoto)
