Founder Securities: Apple's artificial intelligence layout will continue to deepen and improve, and the fruit chain will also usher in sectoral opportunities

According to the report released by Founder Securities on Zhitong Finance and Economics APP, Apple is fully embracing AI, with frequent moves in the field of AI, demonstrating Apple's emphasis on AI. Apple has deeply laid out AI in various aspects such as technological research and development, product applications, and ecosystem construction, with continuous improvement in AI application ecosystem. Apple's AI layout is comprehensive and in-depth, focusing on both technological research and development, product applications, as well as ecosystem construction and cooperative development. In the future, as AI technology continues to advance and its application areas expand, Apple's AI layout will continue to deepen and improve, bringing sectoral opportunities to the entire Apple industry chain.

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Views from Founder Securities:

Significant increase in domestic smartphone shipments in April, recovery in consumer electronics demand, remarkable results in Apple's promotions leading to a surge in shipments.

Data released by the China Academy of Information and Communications Technology shows that in April 2024, domestic smartphone shipments reached 24.071 million units, a year-on-year increase of 28.8%. Among them, 5G smartphones accounted for 20.232 million units, a year-on-year increase of 52.2%, representing 84.1% of the total smartphone shipments during the same period. From January to April 2024, domestic smartphone shipments totaled 91.486 million units, a year-on-year increase of 12.3%. Among them, 5G smartphones reached 76.665 million units, a year-on-year increase of 18.3%, accounting for 83.8% of the total smartphone shipments during the same period. On Tmall, Apple's first-hour transaction volume exceeded 1.5 billion, and Apple's official flagship store on Tmall launched a price reduction promotion. Currently, the iPhone 15 series has become the best-selling product.

Global PC shipments rebound, AI PCs bring new growth.

IDC pointed out that after two years of decline, the global PC market resumed growth in the first quarter of 2024, with shipments reaching 59.8 million units, a 1.5% increase compared to the first quarter of 2023. IDC stated that PC shipments in most regions of China have started to recover, driving growth in the Americas, the Middle East, and Africa. Canalys also mentioned that in the first quarter of 2024, the total shipments of desktops and laptops increased by 3.2% year-on-year, reaching 57.2 million units. Laptop shipments grew by 4.2% to 45.1 million units, while desktop shipments remained relatively stable, decreasing by only 0.4% to 12.1 million units. This indicates a continuous recovery in PC demand across various sectors. Benefiting from the update of Windows 11 and the development of AI PCs, the PC market is expected to accelerate growth throughout the year Apple fully embraces AI, making frequent moves in the field of AI, demonstrating Apple's emphasis on AI. Apple has deeply laid out AI in various aspects such as technological research and development, product applications, and ecosystem construction, with continuous improvement in the AI application ecosystem.

Apple has launched its first AI system, Apple Intelligence. Based on the powerful computing power of the A17 Pro and M series chips, Apple Intelligence integrates generative models directly into the core of iPhone, iPad, and Mac, combined with cloud-based Private Cloud Compute technology. In collaboration with OpenAI and others, Apple is creating AI terminal devices through the "on-device model + private cloud + external model" approach. Its main applications include: 1) Siri With ChatGPT: integrating ChatGPT into Siri to enhance its language understanding and personalized service capabilities; 2) Text processing: integrating AI writing functions into applications such as mail and notes; 3) Image processing: using AI applications like Image Playground, Genmoj, and Image Wand to understand user preferences and context, creating image content closely related to users' personal lives and interests; 4) Audio transcription: supporting call recording function and utilizing AI to transcribe and summarize audio.

Updates to Apple's major operating systems:

1. Mobile: iOS 18 released, enhancing personalization; 2) Tablet: iPadOS 18 released, optimizing handwriting fonts and strengthening math note functions; 3) PC: macOS 15 Sequoia released, adding screen mirroring function for iPhone connectivity; 4) Vision Pro: visionOS 2 released, improving gesture interaction and spatial photo functions; 5) Wearable devices: watchOS 11 for Apple Watch released, enhancing AirPods performance and interaction.

Apple's AI layout is comprehensive and in-depth, focusing on both technological research and product applications, as well as ecosystem construction and collaborative development. In the future, with the continuous development of AI technology and the expansion of application areas, Apple's AI layout will continue to deepen and improve, bringing sectoral opportunities to the entire Apple industry chain.

Risk Warning: AI progress falls short of expectations, research and development progress lags, and overseas trade frictions have an impact