Mobile phone supply chain stocks experienced a collective rebound. At the time of writing, Q TECH (01478) rose 6.51% to HK$8.67; AAC TECH (02018) increased 4.83% to HK$37.74; COWELL (01415) gained 4.37% to HK$32.98; and SUNNY OPTICAL (02382) was up 4% to HK$66.25. The movement follows Apple's announcement of its second-quarter financial results for the period ending March 28. During the quarter, Apple reported revenue of $111.2 billion, a 17% year-on-year increase, and a net profit of $29.6 billion, up 19% compared to the same period last year. Apple's CEO, Tim Cook, stated that the company achieved its best quarterly performance ever, with revenue growth reaching double-digit percentages across all regions. Driven by strong market demand for the iPhone 17 series, the iPhone business set a new quarterly revenue record, and the services business also achieved a new high in revenue. China Merchants Securities pointed out that expectations are high for the new CEO, who has a background in hardware engineering, to lead a new wave of innovation in Apple's AI software and hardware. The firm believes that the trend towards accelerated innovation in Apple's AI hardware and software, along with upstream structural components and optics, is clear for 2026-2027. This is further supported by efforts from major North American tech giants like OpenAI and Alphabet in AI at the device level. The firm notes that rising memory prices do not alter the major trend of AI-driven innovation on devices. Furthermore, the strategic positioning of high-quality Apple supply chain companies as they diversify into core areas such as AI computing and robotics should not be overlooked. The view is that the scarcity of premium Apple supply chain resources will become more pronounced, leading to a revaluation of the Apple supply chain.
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