HK Stock Market Move | Smartphone supply chain stocks fall again; Nomura holds cautious view on Apple supply chain, expects iPhone output to decline year-on-year next year.

The smartphone supply chain is under pressure again. As of press time, FIT Hon Teng (06088) fell 12.98% to HK$2.95; Lens Technology (06613) fell 5.50% to HK$13.58; Q TECH (01478) fell 3.72% to HK$4.395; BYD ELECTRONIC (00285) fell 2.08% to HK$21.64. On the news front, Nomura released a research report stating that Apple's fourth fiscal quarter results beat market expectations, but it holds a cautious view on the Apple supply chain. Due to rising memory costs, it expects the Apple supply chain to face tougher year-on-year comparisons from the fourth quarter of this year to the first quarter of next year. Nomura expects that in the first half of next year, suppliers' revenue from Apple may overall decline by double digits year-on-year. The bank expects sentiment among Apple suppliers to become more cautious in the coming months, until the bank gains better visibility in the second quarter of next year on the new iPhone 19/20 Pro and Duo 2 for the second half of next year. The bank cut its 2026 iPhone production forecast by 2% from 260 million units to 254.4 million units, implying 5.6% year-on-year growth, and introduced a fiscal 2027 iPhone production forecast of 250 million units, implying a 1.7% year-on-year decline.