As the AI end-side model continues to be iteratively upgraded, Minsheng Securities expects that many of Apple's design innovations will revolve around cooling next year, and the iPhone's cooling solution will usher in changes.
The Zhitong Finance App learned that Minsheng Securities released a research report stating that the new Apple (AAPL.US) model was officially released, and investment in endside generative AI was increased. As the core of personalized AI systems, Apple Intelligence is expected to drive a new wave of rotating machines this year and next. In terms of hardware, it is expected that next year the iPhone will usher in major upgrades in terms of cooling solutions and soft and hard board structural processes, and related industry chain companies may benefit. As the AI end-side model continues to be iteratively upgraded, it is expected that many of Apple's design innovations will revolve around cooling next year, and the iPhone's cooling solution will usher in changes. In addition, computing and storage upgrades will also place higher demands on the internal space of mobile phones, and the development trend of terminal products towards miniaturization and diversification of functions will not change. The team expects Apple's PCB to undergo many upgrades in materials and processes next year.
Event: At 1 a.m. on September 10, 2024, Beijing time, Apple held an autumn product launch conference to announce the new iPhone 16 series, iWatch Series 10, iWatch Ultra2, and the new AirPods series (AirPods 4/AirPods Pro2/AirPods Max2).
The new Apple iPhone 16 has been released, and Apple Intelligence will be launched soon.
1) Apple released new iPhone16, iWatch, and AirPods series: ① For iPhones, the new 16/16Plus/16Pro/16Pro Max models start at $799/899/999/1199, respectively. The chip was upgraded to A18, and the ultra-wide-angle+fusion main camera can shoot spatial video for Vision Pro; the Pro series uses a titanium exterior, and the 3 cameras have been updated to bring a better shooting experience with camera controls. ② On the Apple Watch side, Apple Watch Series 10 and Watch Ultra2 were released, starting at $399/799. The main focus is on being lightweight; aluminum and polished titanium are 10%/20% lighter than previous products, respectively. ③ In terms of AirPods, the entire series has been updated. The starting price of AirPods 4 is $129 (with active noise cancellation); the starting price of the AirPods Pro 2 is $249; the starting price of the AirPods Pro 2 is $249, adding 3 major features: active noise cancellation, hearing protection, and hearing aid; and the new color of the AirPods Max starts at $549.
2) Subsequent timeline: ① The new iPhone 16 series will be pre-ordered at 8 p.m. on September 13 and officially released on September 20; ② Apple Intelligence will be used with software updates. The English version will be released in the US in October, and will expand to Australia/Canada/New Zealand/South Africa/the United Kingdom in December, and will continue to expand to Chinese/French/Japanese/Spanish over the next 25 years.
AI catalyzes hardware upgrades, and heat dissipation+PCB is the main driving point. As the core of a personalized AI system, Apple Intelligence requires high-computing power chips and memory to accommodate large models. Apple tailored the iPhone 16 to develop the A18, using the latest 6-core CPU (2 performance+4 energy efficiency cores) and a desktop GPU architecture (new 5-core GPU), which greatly improves energy efficiency compared to the previous generation. The iPhone 16's cooling structure and materials have been upgraded (structurally, the motherboard is upgraded, and the surrounding architecture of the chip is optimized; in terms of materials, a 100% recycled aluminum heat sink structure is used). As the AI end side model continues to be iteratively upgraded, Minsheng Securities expects that many of Apple's design innovations will revolve around cooling next year, and the iPhone's cooling solution will usher in changes. In addition, computing and storage upgrades will also place higher demands on the internal space of mobile phones, and the development trend of terminal products towards miniaturization and diversification of functions will not change. Minsheng Securities expects Apple's PCB to undergo many upgrades in materials and processes next year.
Investment advice: Apple's new phone was officially released, and investment in endside generative AI was added. As the core of personalized AI systems, Apple Intelligence is expected to drive a new wave of rotating machines this year and next year. Furthermore, in terms of hardware, Minsheng Securities expects that next year the iPhone will usher in major upgrades in terms of cooling solutions and soft and hard board structural processes, and related industry chain companies may benefit. Recommended attention: Lixun Precision (002475.SZ), Lingyi Intelligent Manufacturing (002600.SZ), Lansi Technology (300433.SZ), Pengding Holdings (002938.SZ), Goertek (002241.SZ), Crystal Optoelectronics (002273.SZ).
Risk warning: Apple iPhone sales fall short of expectations, AI innovation falls short of expectations, and exchange rates fluctuate.
