Understanding the Market | Apple Concept Stocks All Retrace, SUNNY OPTICAL and COWELL Both Drop Over 7%
Apple concept stocks retreated today, with SUNNY OPTICAL falling 7.03% and COWELL dropping 7.12%. Stimulated by the news of mutual tariff reductions between China and the United States, the gains significantly expanded at the end of yesterday's trading session. Apple announced a price reduction for the iPhone 16 series, which may affect market competition. Guoyuan International pointed out that Apple's smartphone shipments in the Chinese market decreased by 9% year-on-year, with market share dropping to 13.7%. It is recommended to pay attention to investment opportunities in leading companies in the Apple supply chain
According to Zhitong Finance APP, stimulated by the news of mutual tariff reductions between China and the United States, Apple concept stocks saw a significant increase in gains at the end of trading yesterday, but today they have retraced along with the broader market. As of the time of writing, SUNNY OPTICAL (02382) is down 7.03%, trading at HKD 68.75; COWELL (01415) is down 7.12%, trading at HKD 24.15; BYD Electronics (00285) is down 6.19%, trading at HKD 35.6; and Q Technology (01478) is down 3.13%, trading at HKD 7.11.
On the news front, it was reported that on May 10, Apple issued a price adjustment notice to its distributors, marking the first time Apple announced a price change on a Saturday. The price of all capacity versions of the iPhone 16 Pro Max has been reduced by USD 160, corresponding to RMB 1313.06; while the price of the 128GB version of the iPhone 16 Pro has been reduced by USD 176, corresponding to RMB 1445.27, with other versions also seeing a USD 160 price drop. Additionally, reports indicate that insiders have stated that Apple is weighing whether to raise the prices of the new iPhone models set to launch this fall. The company is exploring a strategy to "bundle" price increases with new features and designs while striving to avoid the perception that price hikes are linked to increased tariffs from the United States.
Guoyuan International released a commentary stating that according to IDC data, Apple's smartphone shipments in the Chinese market decreased by 9% year-on-year in the first quarter of this year, with its market share dropping from 17.4% to 13.7%. To cope with fierce competition from other Chinese brands and to reduce inventory pressure for future new models, Apple's price cuts not only benefit its own sales growth but may also encourage other brands to follow suit. The firm believes that the consumer electronics industry has room for valuation recovery in the short term and recommends actively paying attention to leading component suppliers in the Apple supply chain with a high proportion of direct or indirect exports
