An optical lens vendor rejected Apple's request to increase orders for variable aperture lenses for the iPhone 18 Pro, prioritizing the development of its CPO business. Such a refusal is rare within Apple's supply chain.
According to reports, Apple requested an increase in variable aperture lens supply from Largan Precision, which was explicitly refused. Largan Precision stated that the company is currently concentrating resources on its CPO business. This technology integrates optical transceivers directly into the SoC package, shortening electrical routing and reducing latency and thermal losses.
Apple, with its massive market volume, typically dictates production arrangements for suppliers, who rarely say &#34;no&#34; to its demands. This time, Apple actively seeking to increase orders already sent a signal of optimism regarding sales prospects for the iPhone 18 series; and the supplier's rare refusal highlights the growing strategic appeal of the CPO track.
Largan Precision's strategic choice also echoes the market enthusiasm for the CPO sector. The Wind CPO index has gained over 26% cumulatively since April 1. Domestic CPO leader Zhongji Xuchuang saw gains close to 30% during the same period, with its stock price hitting new highs repeatedly, becoming one of the most watched directions in the recent technology sector.

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<h2>Betting on CPO, Actively Giving Up Apple Orders</h2>
The core logic behind Largan Precision's rejection of Apple's request lies in its strategic bet on the CPO sector. By deeply integrating optical transceivers with chip packaging, CPO technology can significantly reduce transmission latency and energy consumption in data center and high-performance computing scenarios, and is regarded as a key direction for next-generation optical interconnect architectures.
It is worth noting that Largan Precision was originally a secondary supplier in the supply chain for iPhone 18 Pro variable aperture lenses, with Sunny Optical serving as the primary supplier. This means Largan Precision's refusal had limited actual impact on Apple's overall supply rhythm. However, the signal it conveys—that a core supplier has actively placed CPO business above Apple orders—still holds significant market meaning.
<h2>Under the AI Infrastructure Wave, CPO Commercialization Accelerates</h2>
Driven by the wave of cloud-based AI infrastructure upgrades, the commercialization process of CPO technology continues to attract high attention from the market. According to the latest in-depth industry report on optical modules released by the Research Center of Western Securities, driven by leading manufacturers such as NVIDIA and Broadcom, the CPO commercialization process is accelerating noticeably.
CPO integrates optical engines and switch ASIC chips onto the same substrate through packaging, fundamentally alleviating bottlenecks in traditional data center network architecture at the physical layer. Its core advantages are reflected in three dimensions:
First, Significant Power Reduction. CPO reduces power consumption by more than 50% compared to traditional DSP optical modules. The NVIDIA Q3450 CPO consumes only 4-5 watts per 800G bandwidth, achieving an energy saving rate of 73%.
Second, Breaking Copper Cable Extension Limits. CPO supports cross-rack expansion; theoretically, the NVIDIA Spectrum 6800 can connect 131,072 GPUs.
Third, Significant Improvement in Signal Integrity. Electrical signal transmission distance is shortened from 15-30 centimeters to tens of millimeters, with a Mean Time Between Failures (MTBF) reaching 2.6 million hours, far exceeding the 500,000 to 1 million hours of pluggable modules.
As the training and inference of large AI models continue to raise requirements for bandwidth and energy efficiency, demand for high-speed optical interconnection solutions in data centers keeps expanding. The industrialization process of CPO as a next-generation solution is accelerating. A lens vendor choosing to tilt resources toward CPO at this moment is a microcosm of the supply chain's high recognition of the long-term growth potential of this sector.

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Optical lens vendor Largan Precision rejected Apple's request to increase orders for variable aperture lenses for the iPhone 18 Pro, citing a need to concentrate resources on developing its CPO business. This move signals the supply chain's bet on the CPO sector. The capital market is highly optimistic about this trend; the Wind CPO index has risen by more than 26% since April 1

- A lens supplier declined Apple's request to increase orders for variable aperture lenses for the iPhone 18 Pro, citing a prioritization of their CPO business.  
- This marks a rare instance where Apple faced a refusal from a supplier, typically dominant in order negotiations, signalling optimism around iPhone 18 sales and highlighting the strategic appeal of CPO technology.  
- CPO technology’s advantages include significant energy savings, enhanced signal integrity, and expanded scalability, spurred by the demand for high-speed optical interconnects amid the ongoing AI infrastructure upgrade.

To Focus on CPO, This Vendor Rejected Apple's Order Increase Request