20150807-三星证券-Dual-lens_cameras__More_than_just_pictures_47页_4mb

Sector Update Summary: Dual-Lens Cameras in Smartphones

Core Content

This document provides an analysis of the dual-lens camera technology in the context of the smartphone industry, focusing on market trends, technological developments, and investment opportunities. It outlines the growing importance of dual-lens cameras in enhancing image quality, enabling 3D mapping, and supporting augmented reality (AR) and virtual reality (VR) applications.

Main Points

• Dual-lens cameras are seen as a key innovation for smartphone manufacturers aiming to improve image quality and introduce 3D capabilities.
• The technology allows for better low-light performance, depth sensing, and thinner device designs.
• Apple and Google are expected to be major drivers in the adoption of dual-lens cameras, with Apple likely to implement the technology in 2H16 as part of its long-term roadmap for AR and 3D mapping.
• Chinese smartphone manufacturers are anticipated to lead the market in 2016, with dual-lens camera shipments expected to rise from 17 million in 2015 to 110 million in 2016 and 250 million in 2017, representing 30% of total smartphone shipments by 2020.
• SEC (Samsung Electronics) is unlikely to adopt dual-lens cameras solely for image quality improvements due to cost and production risks, but it may follow Apple and Google's lead to avoid falling behind.

Key Players and Investment Ideas

• LG Innotek is highlighted as a key beneficiary due to its relationship with Apple and potential to supply Chinese firms using mass production technology.
• Dongwoo Anatech, an autofocus driver IC maker, is expected to benefit from the increased shipments of dual-lens camera smartphones by Chinese manufacturers.
• Sekonix is also mentioned, though its target price is not specified.

Technological Considerations

• 3D mapping is a primary use case for dual-lens cameras, with applications in self-driving cars, facial/gesture recognition, and AR/VR.
• Lens combination is a critical area of development. The use of different megapixel lenses (e.g., 5MP and 8MP) is seen as more optimal than identical ones.
• Actuators are still necessary for focusing and image stabilization, even with post-processing capabilities.
• Infrared light lenses are not expected to be widely adopted in dual-lens camera smartphones due to high costs and noise issues.

Market Outlook

• The dual-lens camera market is expected to grow significantly, with 110 million units projected for 2016 and 250 million for 2017.
• By 2020, dual-lens cameras are expected to be present in 30% of all smartphones.
• Chinese manufacturers are likely to dominate early adoption due to their flexibility and desire to differentiate from leading players like Apple and Samsung.
• Camera costs are expected to rise further as dual-lens technology is implemented, increasing component spending and potentially boosting long-term earnings for manufacturers.

Limitations and Challenges

• Alignment technology is crucial for dual-lens cameras to avoid optical axis deviation, which can lead to image blurring.
• Image signal processing (ISP) is a major challenge, requiring optimization to reduce power consumption and DRAM usage.
• Component suppliers may face difficulties in meeting the high standards required by Apple and Samsung, particularly in mass production and technical specifications.

Summary of Dual-Lens Camera Benefits

• Improved image quality in low-light environments.
• 3D depth sensing for enhanced user experiences.
• Thinner device designs due to compact module options.
• Support for AR and VR through 3D mapping and image processing.

Strategic Considerations

• Apple is expected to adopt dual-lens cameras in 2016, which will influence the direction of the market.
• Samsung is focusing on hardware improvements like OIS and lens speed rather than simply increasing pixel count.
• Chinese manufacturers are likely to be the first to mass-produce dual-lens camera smartphones, creating opportunities for component suppliers.

Investment Recommendations

• LG Innotek is recommended as a "BUY" with a target price of KRW150,000.
• Dongwoo Anatech is favored for its potential to benefit from the growth in dual-lens camera shipments by Chinese manufacturers.
• Sekonix is mentioned but lacks a target price.

Conclusion

The dual-lens camera technology is poised to transform the smartphone industry, driven by the need for better image quality and 3D capabilities. While the market is expected to grow rapidly, challenges such as alignment, ISP optimization, and cost remain. Chinese manufacturers are likely to lead the way, with Apple and Samsung following in the long term. Investment opportunities are concentrated among component suppliers like LG Innotek and Dongwoo Anatech, which are well-positioned to benefit from the shift.