HK Stock Concept Tracking | Apple Inc. (AAPL.US) sales in China surged by 37% in a single month! The Apple supply chain is expected to welcome a new cycle of prosperity (Attached Concept Stocks)

Apple Inc.'s iPhone 17 series of smartphones has had a good start in China. According to data released by Counterpoint on Tuesday, in October, iPhones accounted for a quarter of smartphone sales in China, with sales increasing by 37% year-on-year. This is also the first time since 2022 that Apple Inc. has held such a high market share in the Chinese market. With the success of Apple Inc.'s iPhone 17 series in China, companies in the related industry chain are expected to benefit. According to Counterpoint, sales of each subsequent model of the iPhone 17 series, ranging from the 5999 yuan (about $850) iPhone 17 to the 8999 yuan 17 Pro Max, have seen double-digit percentage increases in sales compared to their predecessors, the iPhone 16. Apple Inc.'s performance has boosted the long-depressed smartphone market. Overall smartphone sales in China increased by 8% in October, mainly due to the promotion of Apple Inc. and Chinese-brand phones. Counterpoint senior analyst Ivan Lam stated that sales of the new iPhone account for over 80% of Apple Inc.'s total sales. With the rise in average selling prices, it is expected that Apple Inc.'s revenue will further increase. Market analysts believe that with the arrival of the year-end consumption season and continuous sufficient product supply, sales of the iPhone 17 series in the Chinese market are expected to reach new highs. Industry chain data shows that Apple Inc. has planned sufficient capacity for the iPhone 17 series, with production volume expected to reach 54 million units in the third quarter and increase to 79 million units in the fourth quarter, with a total annual production estimate of 133 million units. It is understood that the production and assembly of the iPhone 17 series is planned with a dual center layout in China and India, with China accounting for 84% and India accounting for 14%. However, the completeness and maturity of the Chinese supply chain remain hard to replace. In Apple Inc.'s supply chain list for 2024, out of 187 core companies, 92 are from China, accounting for over 50%. As the success of the iPhone 17 boosts Apple Inc. and its investors' expectations for the company's future, Apple Inc. CEO Cook stated at the end of October's earnings conference that the quarter ending in December is expected to be the best quarter in the company's history, as well as the best quarter since the release of the iPhone. Apple Inc.'s fourth-quarter financial report for the 2025 fiscal year (ending September 27) showed that Apple Inc.'s total revenue for the fourth quarter was $102.466 billion, setting a historical record for the same period, an 8% increase from the $94.930 billion in the same period last year; net profit reached $27.466 billion, a significant 86% increase from the $14.736 billion in the same period last year. In addition to being greatly popular in the Chinese market, Apple Inc.'s iPhone 17 series has also attracted attention in the US market. A Counterpoint Research report pointed out that sales of the iPhone 17 series in the US and China increased by 14% in the first ten days of their release compared to the previous generation smartphones. Huaxin Securities released a research report stating that the performance of the iPhone 17 series in China and the US is significantly better than its predecessor. In the Chinese market, the base model iPhone 17 has become the main driver of growth, almost doubling sales compared to the previous generation products. With a stronger chip, superior display, larger storage, and upgraded front camera, it offers high cost-performance ratio and is highly sought after by consumers. With better-than-expected sales of the iPhone 17 series and the upcoming release of new products by Apple Inc. in 2026-2027, the supply chain is expected to enter a new period of prosperity, and the related supply chain in mainland China is expected to continue to benefit. Related concept stocks: Lens Technology (06613): HAITONG INT'L issued a report stating that Lens Technology was rated 'outperforming the market' with a target price of HK$36.5. The report stated that Lens Technology, as a leading platform-based dragon head in the smart terminal industry chain, fully benefits from the innovation cycle of major clients. In the next three years, smart phones and computers will benefit from the innovation cycle of major clients, with high business visibility, and are expected to accelerate growth. COWELL (01415): The company is deeply integrated with Apple Inc., with a competitive advantage in customer stickiness. In the first half of 2025, income from Apple Inc. accounted for 98.1% of the company's total revenue. Customer stickiness comes from two main advantages: leveraging the industrial chain resources of Luxshare group with significant synergies, and continuous investment in capital expenditure to meet Apple Inc.'s requirements for supply chain companies in terms of capacity scale and rapid response. BYD ELECTRONIC (00285): As a well-known domestic electronic manufacturing service provider, it manufactures iPad, MacBook, and other products for Apple Inc., and also has the potential to supply components such as phone batteries to Apple Inc. The company's performance growth in 2026-2027 will be driven by various factors. In consumer electronics: starting from the fourth quarter of 2025, the company will increase investment in mid-frame capacity, with significant contributions expected from major clients' foldable and 20th-anniversary models, as well as the addition of new customer home product assembly business. AAC TECH (02018): Goldman Sachs Group, Inc. released a research report stating that based on a 25.6x forecasted 2026 P/E ratio, AAC TECH's 12-month target price was raised to HK$68.6, maintaining a 'buy' rating. The company is optimistic about the improvement in profit margins in 2025-27, benefiting from a more favorable product structure (component specifications upgrade under changes in phone appearance; upgrade in phone lens pixel structure) and improved production yield and efficiency at a larger scale. SUNNY OPTICAL (02382): Data for shipment quantities in 2025 show that mobile lens shipments reached 122 million units, with a year-on-year increase of 5.7% and a month-on-month increase of 4%. This is mainly due to strong demand for new iPhone series and the recovery of the Android market. Mobile camera module shipments reached 44.997 million units, a 33.2% year-on-year increase.