Viavi, Finisar (NASDAQ: FNSR), and AMS -- all three of which are Apple suppliers -- told the outlet that bottlenecks for crucial 3D-sensing components are expected to persist until 2019, which will hold back mass adoption. Finisar is a particularly important supplier of VCSELs, scoring a massive $390 million award from Apple late last year that will be invested in VCSEL production capacity at a manufacturing facility in Sherman, Texas. That "award" is really just a prepayment for future component orders, effectively confirming that Apple is indeed locking down as much VCSEL supply as it can in the near term, precluding rivals from getting their hands on the critical components in volume. Reuters says that "Android producers are struggling to source" VCSELs. This is about as official as it gets The report largely confirms what supply-chain reports and Street analysts have been saying for months, but in a somewhat more official capacity. Several supplier execs are quoted on the record saying that there's essentially no way for competing smartphone manufacturers to even obtain VCSELs and other necessary components like optical filters in the near term. These suppliers know better than anyone. To be clear, these suppliers are in talks with Android original equipment manufacturers and will absolutely want that business when the time is right, but the execs implicitly acknowledge that their hands are tied, as near-term production is being allocated to Apple.
Even Suppliers Think Apple Has a 2-Year Head Start on 3D Sensing
But Lumentum is scaling production more rapidly so there is a boom to be expected for them
