HK Stock Market Move | Apple concept stocks lead the decline, with Q TECH (01478) falling nearly 5% and COWELL (01415) falling nearly 4%.

Apple concept stocks lead the decline, as of the time of writing, FIH (02038) fell by 6.22%, to 18.1 Hong Kong dollars; FIT HON TENG (06088) fell by 5.51%, to 5.32 Hong Kong dollars; Q TECH (01478) fell by 4.82%, to 14.01 Hong Kong dollars; COWELL (01415) fell by 3.95%, to 31.62 Hong Kong dollars; BYD ELECTRONIC (00285) fell by 3.79%, to 37.04 Hong Kong dollars. On the news front, renowned Apple analyst Ming-Chi Kuo stated that demand for the iPhone Air is lower than expected, and the supply chain has already begun reducing shipments and production capacity. The supply chain's capacity is expected to be cut by over 80% until 1Q26, and some long lead-time components are expected to cease production by the end of 2025. This means that existing Pro series and standard models have already covered the majority of high-end user demands, making it difficult to find new market differentiation and positioning (attempts from mini, Plus to Air have not been successful). In addition, trade variables are disrupting market sentiment. Huafu Securities previously pointed out that the impact of tariffs on the supply chain equipment companies should not be overestimated, as Apple has very strict requirements for its suppliers and domestic supply chain companies are irreplaceable. For equipment companies, Apple may allocate more resources to flexible automation, 3D printing, and other new devices and processes that can reduce costs and improve efficiency; or accelerate the promotion of high-end models, foldable screens, smart glasses, and other new products, which can also benefit the construction and upgrade of relevant production lines.