Apple Considers STMicroelectronics for iPhone LiDAR Sensors, Sending Chipmaker’s Stock Soaring – Breaking News!
Paris, France – January 9, 2024 – Shares of STMicroelectronics NV (EPA:STMPA) jumped nearly 7% today following reports that Apple is exploring the use of the company’s LiDAR sensors in upcoming iPhones, specifically the anticipated iPhone 18. This potential move represents a significant shift in Apple’s supply chain strategy, currently reliant solely on Sony for these crucial components. This is a breaking news development with major SEO implications for the tech sector.
A Potential Supply Chain Earthquake for Apple
According to industry sources cited by Investing.com, Apple is actively discussing incorporating STMicroelectronics’ LiDAR technology into its future iPhone lineup. Currently, LiDAR sensors – used for augmented reality (AR) applications, improved depth sensing for photography, and potentially future autonomous features – are exclusively sourced from Sony. Diversifying to a second supplier would not only mitigate risk for Apple but could also drive down costs and foster innovation.
Morgan Stanley analysts believe this development is a positive sign for STMicroelectronics, indicating improved customer penetration at a crucial time. The global semiconductor industry has faced a prolonged downturn, and securing a contract with Apple would be a substantial win. The potential for significant order volumes over time is a key factor driving investor enthusiasm.
LiDAR: Beyond Just iPhones – The Expanding Applications of Depth Sensing
LiDAR (Light Detection and Ranging) isn’t just about making iPhone photos look better. It’s a foundational technology for a range of emerging applications. Originally developed for autonomous vehicles, LiDAR is now finding its way into robotics, industrial automation, and even environmental mapping. The technology creates a 3D map of the surrounding environment, allowing devices to “see” and interact with the world in a more sophisticated way. Apple’s early adoption of LiDAR in its Pro iPhones demonstrated the consumer appeal of AR and depth-sensing capabilities.
Think about the future: more accurate AR gaming, enhanced virtual try-on experiences for online shopping, and even more intuitive interfaces for smart home devices. The demand for LiDAR sensors is expected to grow exponentially in the coming years, making this a strategically important market for chipmakers like STMicroelectronics and Sony.
Profitability Timeline: A Cautious Outlook Despite the Good News
While the news is undoubtedly positive for STMicroelectronics, Morgan Stanley cautions that a near-term boost to profitability isn’t guaranteed. Analysts currently predict a margin recovery is unlikely before the second half of 2026. The brokerage firm has a price target of €20 per share for STMicroelectronics, based on an estimated 2026 earnings per share of $1.12, calculated using a 20x earnings multiple.
This highlights a crucial point for investors: while the Apple partnership represents a long-term opportunity, patience will be required. The semiconductor industry is cyclical, and navigating the current downturn requires a strategic, long-term perspective. Understanding the nuances of supply chain dynamics and technological advancements is paramount for success in this sector.
The potential partnership with Apple signals STMicroelectronics is actively repositioning its product strategy for the coming years, focusing on high-growth areas like advanced sensing technologies. This proactive approach is likely to resonate with investors seeking companies poised to capitalize on the next wave of technological innovation. Stay tuned to archyde.com for the latest updates on this developing story and in-depth analysis of the tech industry.
