Kuo: Apple Supplier Ly iTech will be a big winner in supplying USB-C Chargers this Fall due to the iPhone 15's shift to USB-C
Ming-Chi Kuo's latest research has found that Apple has significantly increased the total shipment forecast of its 20W USB-C charger by approximately 120% for 2Q23 and 3Q23 and has set 20W USB-C charger shipment at about 70 million units for 4Q23, as it is optimistic about strong replacement demand for 20W USB-C chargers following the switch to USB-C for the iPhone 15 series.
Apple’s 20W USB-C charger shipments in 2023 are anticipated to see a significant 30–40% YoY growth, amounting to 230–240 million units, thanks to the strong replacement demand.
Kuo believes that Apple will optimize the fast charging performance of MFi-certified chargers for the iPhone 15. Among Apple’s chargers, the 20W USB-C model is the most cost-effective choice for iPhone users, resulting in strong replacement demand for 20W USB-C chargers.
Another potential factor driving the robust replacement demand could be that future iPhone 15 users might purchase more than one Apple 20W USB-C charger to meet the need for more charging locations.
Lastly, Kuo notes that LY iTech and Flextronics assemble Apple’s 20W USB-C chargers. While the latter has a marginally higher share of shipments than the former; its revenue is about 5–7 times greater than that of LY iTech. Consequently, regarding revenue contribution, LY iTech stands out as the primary beneficiary of the strong replacement demand for Apple’s 20W USB-C chargers.