LG Innotek Likely to Benefit from Apple's Metaverse and Car Projects

The stock price of LG Innotek is on the uptick as the company is expected to become the biggest beneficiary of Apple's metaverse business and car project.

On Nov. 12, the company's stock price closed at 242,000 won, up 4.99 percent from the previous trading day. Compared to one month ago, it rose 25.4 percent. On Nov. 11, it also gained 6.22 percent from the previous trading day. It marked the third time in the second half of 2021 that LG Innotek's stock price has risen more than 6 percent.

LG Innotek accounts for more than 70 percent of the camera modules used for Apple’s iPhone 13. It is also expected to become Apple's partner in the metaverse business. Apple recently filed a patent application with the U.S. Patent Office for a metaverse device for video conferencing and educational purposes, according to IT magazine Patently Apple.

Metaverse XR devices must have high resolution, fast response speeds and light weight, so organic light-emitting diode (OLED) panels are essential to them. Accordingly, LG Innotek's OLED-related components are highly likely to be used for Apple's XR devices.

The launch of the Apple Car is also a positive factor for LG Innotek. This is because Apple is expected to actively utilize the iPhone parts supply chain for the Apple Car. In particular, LG Innotek is already supplying cameras for automobiles and self-driving parts to more than 15 automakers, including the largest electric vehicle company in North America. If Apple releases the Apple Car without cooperation with carmakers, it is likely to take the lead in developing the vehicle's hardware and software, as it did for the iPhone. LG Innotek is considered to have the capability to join the Apple Car supply chain.