With the major launch of Apple Intelligence, the “fruit chain” and consumer electronics concepts are once again active.

On Tuesday, A-shares such as Rongyi Precision, Yinbang Co., Ltd., Gelin Precision, Optoelectronics, Crystal Optoelectronics, and Furi Electronics rose and stopped.

Hong Kong stocks such as Gaowei Electronics rose more than 9%, Rongyang Industrial and Sunyu Optical Technology rose more than 3%, and Qiu Titanium Technology and BYD Electronics followed suit.

Since late September, the A-share consumer electronics sector began to rise. Although it experienced a major correction after the National Day, its cumulative increase still exceeded 47%.

Apple AI launched

This week, Apple will have an important week.

On Monday (10/28), Apple officially launched the first batch of Apple Intelligence and iOS 18.1.

At the same time, all new Mac series products equipped with M4 chips were unveiled, which also marked the entry of its devices into a new era.

Apple Intelligence, introduced in iOS 18.1 this time, will be open to users of the iPhone 16 series and iPhone 15 Pro series.

Key features include writing tools, image cleaning, notification summaries, and Siri enhancements. More Apple Intelligence features coming in December.

Plus, the new iMac costs the same as its predecessor, starting at $1,299, with improved performance and an enhanced neural engine to handle AI tasks.

The product will be available on November 8.

Furthermore, according to industry sources, Apple has actively invested in the development of the next generation M5 chip and continues to use TSMC's 3nm process for production. It will be released as soon as the second half of next year until the end of the year.

It is worth noting that Apple will announce its 2024 Q4 earnings report this Thursday.

Wall Street expects Apple's Q4 revenue to be 94.32 billion US dollars, up 5.38% year over year; earnings per share are 1.53 US dollars, up 4.85% year over year.

Goldman Sachs is optimistic that demand for the iPhone 16 is strong, and Apple's profit will greatly exceed expectations.

According to data from research agency Counterpoint, the initial sales performance of the Apple iPhone 16 series in the Chinese market exceeded expectations.

Sales of the iPhone 16 surged 20% in the three weeks it went on sale in China, and sales of Pro and Pro Max models increased 44% over the same period last year.

This is a positive sign for Apple.

In addition, IDC also anticipates that despite negative effects due to the delayed launch of Apple Intelligence, customers switching from iPhone 12/13 and earlier models to AI-enabled iPhones will drive iPhone growth over a long period of time.

It expects continued growth during the upcoming holiday sales season.

“Fruit Chain” performance explodes

As a series of good news from Apple came, the A-share “fruit chain” was already booming.

Recently, Apple Concept Stock's three-quarter performance report has exploded.

Looking at the A-share “fruit chain” companies that have been announced so far, three of the four companies achieved year-on-year growth in performance, and the net profit of all four companies increased year-on-year.

“Fruit Chain” leader Lixun Precision achieved revenue of 177.177 billion yuan in the first three quarters, up 13.67% year on year; net profit was about 9.075 billion yuan, up 23.06% year on year.

Lansi Technology achieved revenue of 46.228 billion yuan in the first three quarters, up 36.74% year on year; net profit was 2.371 billion yuan, up 43.74% year on year.

Changying Precision's revenue for the first three quarters reached 12.1 billion yuan, up 23.6% year on year; net profit was 0.594 billion yuan, up 381.59 times year on year.

Although Goertek's results for the first three quarters fell 5.82% year on year to achieve revenue of 69.646 billion yuan, net profit was 2.345 billion yuan, an increase of 162.88% year on year.

However, behind the explosion in Apple's conceptual performance, they all pointed out that it would benefit from the recovery in demand for consumer electronics and AI terminals.

Recently, Apple Cook began the second round of this year's “China Tour” and conducted field research on several supply chain companies such as Lansi Technology and Lixun Precision.

Cook said he is optimistic about Apple's long-term development potential in the Chinese market and the growth of Apple's supply chain in China, and will continue to increase investment in the supply chain, R&D, etc.

In response, Huafu Securities pointed out that consumer electronics is at a triple inflection point of steady recovery, the advent of an industry innovation cycle, and continuous catalysis of new products from giants.

Medium- to long-term AI-enabled smart terminals can drive phones/PCs to speed up switching. At the same time, the AI load requires changes in the underlying chip architecture, memory, and overall machine design scheme, which drives the improvement of stand-alone ASP and accelerates the exploration of new hardware forms.

The acceleration in the pace of consumer electronics innovation is expected to drive the industry into a boom cycle.