While Sony has supplied the camera modules for the iPhone for some time now, Apple may turn to LG to supply the cameras for the iPhone 7. According to analysts at Nomura Securities, Sony has fallen behind in its production of dual camera modules, rumored to be bound for the iPhone 7 Plus. This has reportedly led Apple to tap LG for camera production.
From Nomura (via Barron's Asia):
We think Sony may not be able to deliver its full share of dual cameras to Apple due to: (1) lower-than-expected yield, and (2) damage to its production facility from the April earthquake in Kumamoto. As a result, we think LGI will gain majority share of the initial dual camera orders from Apple; hence, we upgrade to Buy.
In addition to dual cameras for the iPhone 7 Plus, Nomura Securities analysts believe that the 4.7-inch iPhone 7 will feature optical image stabilization (OIS), a first for the 4.7-inch models. Currently, OIS is only available in the 5.5-inch iPhone 6 Plus and 6s Plus.