In our view, non-Apple 3D sensing module suppliers prefer Lumentum and will likely push VCSEL laser consumption even higher. Princeton Optronics also seems to stand out in terms of quality and yield, but we believe capacity is cur- rently an issue. We were surprised to see OFilm adopting a 990 VCSEL array with over $5 in content, and have also found it interesting that Vertilite will build a VCSEL fab in Shanghai in order to support 3D sensing adoption in China. Our industry research suggests the adoption curve could ramp once the cost of 3D sensing modules lowers to $10. We are still positive on LITE due to increased VCSEL demand. Although II-VI (IIVI:NR) does not have much content in the iPhone 8, IIVI could quickly grow share in 2018 and compete with LITE.