Osram exits Lumileds as the preferred supplier of Apple LED devices

Prior to Apple's launch of the iPhone 7, Osram Licht (Germany) was downgraded from the list of suppliers, and Royal Philips of the Netherlands joined the list of the top 200 suppliers of Apple. Although not specifically listed for each supplier will be responsible for the components, but this means Royal Philips' subsidiary Lumileds will provide Apple with LED equipment. In addition, Nichia will supply some components for Apple.

It is reported that the LED flash in the Apple iPhone camera uses an LED infrared sensor to detect the position of the phone relative to the user's face. In addition, LEDs can help Apple observe and measure the wearer's pulse. Apple recently obtained a new patent license from the US Patent and Trademark Office, which also requires the use of infrared LEDs and photodiodes. This technology allows Apple users to "screen" the screen.

Bloomberg commented that OSRAM is divesting its traditional lighting business and focusing on LED lighting, and has invested about $1.4 billion to build its semiconductor LED lighting program. This time Apple was removed from the list of preferred suppliers, I believe it will be a blow to OSRAM.

On the other hand, Royal Philips (PHILIPS) is still seeking to sell its Lumileds company with LED and automotive lighting. Earlier, China Investment Corporation and Philips had an acquisition agreement to acquire an 80% stake in Lumileds for $3.3 billion, and the acquisition failed due to obstruction by US regulators. The profitable new contract between Philips and Apple will likely lead to a further increase in the price of Lumileds, which is not good news for potential buyers of Lumileds.