HK Stock Market Move | The mobile phone industry continues to rise, with reports that Apple and Alibaba are working together to develop AI capabilities. Analysts suggest that the AI features and new device models could boost sales.

The mobile phone industry chain continues to rise. As of the time of writing, AAC TECH (02018) rose by 4.32% to 47.05 Hong Kong dollars; Sunny Optical (02382) rose by 3.53% to 88 Hong Kong dollars; BYD ELECTRONIC (00285) rose by 2.63% to 56.55 Hong Kong dollars; Q TECH (01478) rose by 1% to 8.08 Hong Kong dollars. On the news front, Apple and Alibaba are reportedly collaborating to develop AI features for Chinese iPhone users. Sources revealed to the media that this is one of Apple's strategies to counter declining sales in China, aiming to provide more attractive software features. CMB International previously published a research report stating that with the introduction of more markets and Chinese smartphone subsidy policies in the first half of the year, the bank expects new AI features and the upcoming launch of 5 new iPhone models to boost iPhone shipments by 2025. Furthermore, Morgan Stanley released a report stating that subsidies for smartphones, tablets, and electronic watches/bracelets officially began on January 20, with strong sales momentum nationwide. Morgan Stanley's latest channel survey showed that from January 20 to January 26, smartphone shipments increased by over 60% year-on-year. The bank believes that smartphones with an average selling price of around 3500 yuan are most likely to benefit, and that Android smartphone manufacturers may be in a more favorable position. The latest shipment performance also aligns with this viewpoint.