Hong Kong stocks tracking concept | Apple Inc. (AAPL.US) sees a 37% surge in sales in China in a single month! The supply chain is expected to usher in a new round of prosperity (including concept stocks)

Apple Inc.'s iPhone 17 series of smartphones has had a good start in China. According to data released on Tuesday by Counterpoint, in October, iPhones accounted for a quarter of all smartphone sales in China, with a year-on-year increase of 37%. This is the first time since 2022 that Apple Inc. has captured such a high market share in China. With the success of the iPhone 17 series in China, related companies in the supply chain are expected to benefit. According to Counterpoint, sales of each subsequent model in the iPhone 17 series, ranging from the 5999 yuan iPhone 17 to the 8999 yuan 17 Pro Max, have seen double-digit percentage increases in sales compared to their predecessors. Apple Inc.'s performance has boosted the long-sluggish smartphone market. Overall smartphone sales in China in October increased by 8%, largely due to the push from Apple Inc. and Chinese brand smartphones. Counterpoint Senior Analyst Ivan Lam stated that sales of the new iPhone account for over 80% of Apple Inc.'s total sales. With the increase in average selling price, it is expected that Apple Inc.'s revenue will further increase. Market analysts believe that with the upcoming peak consumption season at the end of the year, coupled with continuous adequate product supply, sales of the iPhone 17 series in the Chinese market are expected to reach new highs. Supply chain data shows that Apple Inc. has planned sufficient capacity for the iPhone 17 series, with production volume reaching approximately 54 million units in the third quarter and expected to increase to 79 million units in the fourth quarter, with a total production volume for the year estimated at 133 million units. It is understood that the production and assembly of the iPhone 17 series adopts a dual-center layout in China and India, with China accounting for 84% and India accounting for 14%. However, the complete and mature supply chain in China remains irreplaceable. Among the 187 core companies listed in Apple Inc.'s supply chain list for 2024, 92 companies are from China, accounting for over 50%. As the success of the iPhone 17 series continues, Apple Inc. and its investors are optimistic about the company's future. Apple Inc. CEO Cook stated at the end of October in the earnings release that the revenue for the quarter ending in December is expected to be the best in the company's history, as well as the best since the launch of the iPhone. Apple Inc.'s fourth-quarter fiscal year 2025 earnings report (ending September 27) showed a total revenue of $102.46 billion, a record for the same period, an 8% increase from the previous year's $94.93 billion; net profits reached $27.46 billion, a significant 86% increase from the previous year's $14.736 billion. In addition to being popular in the Chinese market, Apple Inc.'s iPhone 17 series has also garnered attention in the U.S. market. According to Counterpoint Research, sales of the iPhone 17 series in the U.S. and China in the first ten days of launch have increased by 14% 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 U.S. is significantly better than its predecessors. In the Chinese market, the entry-level iPhone 17 has become the main driver of growth, with sales almost doubling compared to the previous generation, offering high value for money with stronger chips, better displays, larger storage, and upgraded front cameras at the same price, attracting consumers. With iPhone 17 series sales exceeding expectations and Apple Inc. set to launch more new products in 2026-2027, the supply chain is expected to enter a new phase of prosperity, benefiting the related supply chain in mainland China. Related concept stocks: Lens Technology (06613): HAITONG INT'L issued a report stating that Lens Technology was upgraded to "outperform the market" rating, with a target price of 36.5 Hong Kong dollars. The report states that Lens Technology, as a leading platform in the smart terminal industry chain, fully benefits from the innovation cycle of major customers, and the future three years of smartphones and computers will benefit from the innovation cycle of major customers, with high business visibility and accelerated growth expected. COWELL (01415): The company has a deep relationship with Apple Inc., with customer loyalty advantages. In the first half of 2025, revenue from Apple Inc. accounted for 98.1% of the company's total revenue, with customer loyalty stemming from two main advantages: leveraging resources in the Luxshare Group's supply chain, significant synergies, and continue investing in capital expenditures to precisely meet Apple Inc.'s requirements for supply chain companies in terms of production capacity and rapid response. BYD ELECTRONIC (00285): As a well-known domestic electronic manufacturing service provider, BYD ELECTRONIC manufactures products for Apple Inc. such as iPads and MacBooks, and may also supply components such as phone batteries to Apple Inc. The company's performance growth in 2026-2027 is benefiting from various drives, including consumer electronics: starting from the fourth quarter of 2025, increased investment in frame production capacity, significant contributions expected from major customers' foldable phones and 20th anniversary models, as well as new home product assembly business for major clients. AAC TECH (02018): Goldman Sachs Group, Inc. issued a research report stating that based on a 25.6 times expected price-to-earnings ratio for 2026, AAC TECH's 12-month target price was raised to 68.6 Hong Kong dollars, maintaining a "buy" rating, bullish on the company's profit margin improvement from 2025 to 2027, benefiting from a more favorable product structure (upgrades in component specifications due to changes in smartphone appearances; upgrades to lens pixel structures), as well as yield and efficiency improvements on a larger scale. SUNNY OPTICAL (02382): The company's shipment data for 2025 shows that 122 million mobile phone lenses were shipped, an annual increase of 5.7% and an increase of 4% month-on-month. This is mainly due to strong demand for the new iPhone series of phones and the recovery of the Android market. 44.997 million camera modules for phones were shipped, an increase of 33.2% year-on-year.