Osram Out, Lumileds In New Apple Supplier List

Apple reportedly dropped Osram Licht AG from its supplier’s list ahead of it iPhone 7 launch. Royal Philips NV was added to the top 200 supplier list, according to a Bloomberg article. While not specifically listing the components that each supplier will be responsible for, the implication is that Royal Philips subsidiary, Lumileds will supply LEDs for its devices. Nichia will also supply some LED components, according to the article.

Apple employs LEDs in the flash for iPhone cameras, in infra-red sensors that detect a phone’s position in relation to a user’s face. LEDs also allow the Apple Watch to measure the wearer’s pulse.

Osram is divesting in its conventional lighting business to switch its focus to LED lighting, and has invested about $1.4 billion in a plant the builds semiconductors for LEDs. Being dropped from the preferred suppliers list is a blow to Osram.

On the other hand, Royal Philips (Philips) is still looking to sell its LED and automotive lighting business Lumileds. U.S. Regulators previously halted the proposed acquisition of Lumileds by Chinese investment company GoScale Capital. The regulators were in charge of vetting acquisitions by foreign companies for national security concerns. The lucrative new contract with Apple will likely up the selling price of Lumileds for potential buyers.