LG Innotek is on a fast growth path. The company’s annual sales are expected to exceed 10 trillion won for the first time in 2021 and exceed 20 trillion won in 2022.
LG Innotek’s sales this year are 20,051.6 billion won, FnGuide reported on December 22. This is a 34.1 percent increase from last year’s 14,945.6 billion won. Its operating profit is expected to rise 32 percent this year to 1,677.8 billion won.
A few years ago, LG Innotek’s sales were still well below the 10 trillion won mark. In 2018 and 2019, its sales were less than 8 trillion won. However, sales in 2020 were 9,541.7 billion won, a 19 percent increase from the previous year. Last year, sales rose 56 percent to 15 trillion won.
LG Innotek supplies camera modules for the iPhone. The share of sales to Apple in LG Innotek’s total sales continues to grow. It increased from 61 percent in 2018 to 64 percent in 2019, 67 percent in 2020, and 75 percent in 2021. Until the third quarter of this year, LG Innotek made 74.8 percent of its sales dependent on Apple.
However, as the company’s dependence on Apple deepens, the risk of taking over from Apple increases. In fact, in the latter half of this year, the Foxconn factory in Zhengzhou, China, the largest iPhone production base, raised concerns that LG Innotek’s business performance would deteriorate.