Market Insight | Apple concept stocks diverge, with iPhone shipments in June down 43% month-on-month, supply chain growth in the third quarter may be lower than expected
Apple concept stocks show divergent trends, with iPhone shipments in June decreasing by 43% compared to the previous month, and supply chain growth in the third quarter may be lower than expected. In China, smartphone shipments in June increased by 14% year-on-year, but fell below sales forecasts, indicating high inventory levels. Compared to the iPhone supply chain, it is expected that the Android supply chain will perform better in the third quarter. The production of the iPhone 16 is set to begin in August, but component preparation growth is limited. Growth in Apple's supply chain in the third quarter may be lower than expected, while the Android supply chain is expected to perform better
According to the Zhitong Finance and Economics APP, the trend of Apple concept stocks is diverging. As of the time of publication, Q Technology (01415) fell by 3.27% to HKD 20.7; Sunny Optical Technology (02382) fell by 1.71% to HKD 43.15; and Fortune Ship (02038) rose by 2.53% to HKD 0.81.
Furui released a research report stating that China's smartphone shipments in June increased by 14% year-on-year, which is the first time this year that the data has been lower than sales forecasts, indicating a high level of inventory. iPhone shipments fell by 43% month-on-month, possibly due to high inventory levels. Based on sales in the past 6 months, the bank expects the third quarter Android supply chain to outperform the iPhone supply chain.
The bank pointed out that the iPhone 16 will begin production in August. However, Apple's production target for the second half of the year is 89 million units, compared to 88 million units for the iPhone 15 in the same period last year, indicating that there will not be a significant year-on-year increase in parts preparation for the iPhone 16. If the production volumes of iPhone 14 and 15 continue to decline in the next two months, Apple's supply chain growth in the third quarter may be lower than expected. In contrast, the Android supply chain is expected to perform better in the third quarter due to lower inventory levels, slower growth in shipments in the second quarter, and healthy sales growth