According to the Smart Finance app, the Apple (AAPL.US) and Huawei events overlapping each other have attracted industry attention. At 1 am Beijing time on Tuesday, the Apple event named "Glowtime" officially began. At the same time, Huawei will hold a new product launch event on September 10 at 14:30, which is referred to by Yu Chengdong as "the most leading, innovative, and disruptive product from Huawei" - the foldable screen smartphone HUAWEI Mate XT will be unveiled soon. Today is widely regarded as a direct competition between the two consumer electronics giants, attracting attention.

First of all, in a nutshell, Apple launched four new iPhones (iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max) early this morning. The main upgrades are the chips (the digital version will have a bigger improvement) and a new camera control button added on the right side of the body. The Pro version has a slightly larger screen, and the video shooting function is further enhanced.

According to the information on Apple's official website in China, the pricing of the four new phones is exactly the same as the iPhone 15 series, ranging from 5,999 yuan to a maximum of 13,999 yuan. Pre-orders will also start this Friday, with shipments starting next Friday.

In addition to the phones, AirPods 4 (standard edition and upgraded edition with active noise cancellation) and Apple Watch Series 10 were also announced. The new iPad mini and Mac mini are expected to be released in October.

It is worth mentioning that "Apple AI" will be released in October with support for the English language, and Chinese support will be available next year.

Analyst Dan Ives wrote in an investor report, "The release of the iPhone 16 is all about Apple Intelligence." "We estimate that in the coming years, about 20% of global consumers will eventually access and use generative AI applications through the Apple ecosystem, which will all begin with this week's iPhone 16."

Next, Huawei's press conference is scheduled for 10th September at 2:30 pm. Recently, Huawei has started pre-ordering for the triple-folding screen phone, with the order volume exceeding market expectations. As of now, the number of people using the pre-order channel for Huawei Mate XT Master has exceeded 3 million.

Yu Chengdong previously revealed in advance that Huawei will launch a "disruptive" new product, while iPhone 16 is Apple's first AI smartphone. The expectations for the "duel" between the two tech giants on the same day have been fully raised.

Since the beginning of this year, there has been a moderate recovery in consumer electronics terminals. According to IDC data, the global shipments of smartphones and PCs in the first half of the year have shown marginal improvement, with year-on-year growth of 7.1% and 2.2% respectively. As the industry recovers, and the third quarter is the peak season for the consumer electronics industry, will the launch of triple-folding and AI smartphones drive consumer enthusiasm for purchasing and boost industry performance scale?

Industry insiders indicate that from the perspective of downstream applications, the recovery of consumer electronics is relatively mild, with no explosive hits or explosive demand growth. The year-on-year growth in shipments of smartphones and PCs in the first half of the year is mainly due to the industry being in a period of price reduction and destocking over the previous year and a half. If the shipment volume of triple-folding phones is ideal, the production and manufacturing processes for folding screens will benefit significantly, including folding screen hinges, assembly and testing methods, titanium alloy, and other related material applications. In addition, combined with the domestic consumer recovery trend from January to August this year, industry observers hold a cautiously optimistic attitude towards stimulating investors' purchasing desires with the release of new products.

After experiencing a period of weak sales, Apple urgently needs to boost its financial performance through the sale of new products. The market is also anticipating that this tech giant's new products can open a new cycle for consumer electronics. This press conference aims to showcase the progress in the AI field to consumers and investors, injecting new vitality into its core products.

In any case, both Apple and Huawei bring a sense of freshness to people. Many market voices anticipate that a wave of device upgrades will follow the launch of new products.

Industry observer Ding Shao believes that while a wave of device upgrades may occur, it should not be overly optimistic. From the perspective of Huawei, its flagship product, the Huawei Mate 70, is still awaiting release. For Apple, a wave of device upgrades may occur within the "Apple fans," who rely on the iOS ecosystem and also want to change to a new device. It is premature to talk about an all-round wave of device upgrades.

Recently, the well-known Wall Street investment firm, Wedbush Securities, released a research report stating that Apple's upcoming iPhone 16 series (to be unveiled at 1 a.m. on Tuesday Beijing time) may help lead a new wave of global consumers using artificial intelligence. Additionally, the institution also stated that more and more market research evidence indicates that the next generation of Apple smartphones may bring long-awaited "growth revival" and a new round of "super-upgrade replacement cycles" for Apple product fans and Apple stock fans. Wedbush maintains its long-standing "outperform the market" rating on Apple (AAPL.US) stock and a target price of $285.

Recently, China Securities Co., Ltd. released a research report stating that the MAU of top AI products in August continued to grow, with higher MAU for intelligent assistant AI products, while the MAU of AI nursing products performed even better. Canalys released a report on the second quarter of intelligent smartphones, predicting that the penetration rate of AI smartphones will reach 17% in 2024 and increase by 30% in 2025. Apple and Huawei will hold their conferences on September 10th, overlapping with each other. AppleIntelligence and Huawei Intelligent Driving are expected to promote the development of edge AI.

Recommendations: 1) Related targets for domestication: hardware such as Ninestar Corporation, Beijing HGHT, Digital China Group, etc., basic software such as DMdata, China National Software & Service, Kylinsoft, Beijing Vastdata Technology, etc., application software and industry solutions such as Beijing Kingsoft Office Software, Inc, Fujian Apex Software, Fujian Aisino, Digital China Group, etc.; 2) AI as a new productivity tool, with higher computing power certainty and more advantageous application card slot for traffic entry, it is recommended to pay attention to Beijing Kingsoft Office Software, Inc., Arcsoft Corporation, Fujian Aisino; 3) Policy catalyst direction, it is recommended to pay close attention to expectations of financial and tax reforms and deepening of power reform, and recommend focusing on China National Software & Service, etc.

Related concept stocks:

Sunny Optical (02382): As a major supplier of camera modules for Huawei, Sunny Optical has been ranked in the top two for years in terms of shipment market share. The company is expected to continue benefiting from the accelerated penetration of mobile optical innovation upgrades and automotive ADAS systems, with significant long-term growth logic in multiple cameras/3D/automotive, etc. In late August, Bank of America Securities released a research report, raising the target price of Sunny Optical (02382) from HK$70 to HK$75, reiterating a 'buy' rating, pointing out that its performance in the first half of the year showed basic improvement in all areas, driven by product portfolio adjustments. The average selling price and gross margin have increased, and the company is more confident in the development of the AR field. The bank stated that it raised Sunny Optical's profit forecast for 2024 to 2026 by 6% to 9%, corresponding to the management's guidance for the full year to be raised. It also looks forward to better-than-expected progress from Apple's projects, which will support business in the coming year and 2026.

Q Tech (01478): Q Tech is a Chinese local camera module manufacturer, focusing on the mid-to-high-end camera module market for Chinese brand smartphones and tablets. Q Tech is not only one of the few manufacturers in China to use COB and COF assembly technologies in camera module manufacturing, but also one of the few Chinese companies skilled in various process technologies for mass-producing fingerprint recognition modules.

Chinasoft Int'l (00354): Northeast Securities previously pointed out that Chinasoft International is expected to benefit from the development of the Harmony OS ecosystem, entering a period of rapid expansion. SWHY stated that as the first IT service provider to sign a Harmony OS element service agreement with Huawei, Chinasoft International provides users with end-to-end Harmony OS native application, element services, third-party SDK development, testing, operation full-life cycle solutions, helping businesses quickly, efficiently, and cost-effectively embrace Harmony OS. Currently, it has signed tens of customers in hotel tourism, government affairs, finance, medical and other industries, launched more than ten Harmony OS native applications and Element services.

BOE Varitronix (00710): Previously, Huawei P20Pro and Huawei P30 series smartphones used screens from BOE Varitronix.

AAC Tech (02018): In late August, JPMorgan released a research report maintaining its 'hold' rating on AAC Tech with a target price raised from HK$29 to HK$34. The report stated that AAC Tech's performance in the first half of the year exceeded expectations, with a strong recovery in profit margins. The management indicated that they are bullish on the stability of this year's revenue performance and expect profit margins to continue improving. This is due to the turnaround from loss to profit in the optical business, a more significant improvement in gross margin than expected. The company believes that this trend will continue in the second half of the year. Looking ahead to next year and the future, JPMorgan believes that AAC Tech's profitability will further improve significantly, driven by the increase in value of content for smart phones, the launch of AI smart phones, the increase in penetration rate of foldable phones, and the contribution from new cooling systems such as Vapor Chamber and hinge products, as well as the development of automotive acoustic-related businesses.

Cowell (01415): Cowell is a holding company mainly engaged in the camera module business. The Camera Module segment is involved in the design, development, manufacture, and sale of camera module products for mobile devices and home appliances. The Optical Components segment is engaged in the design, development, manufacture, and sale of optical components for optical disc players. The company's products are mainly sold to mainland China and South Korea. Its key customers include Apple, LG Electronics, Samsung Electronics, and Hitachi.