Minsheng Securities: Apple expands production in the U.S. & starts a new cycle of innovation; 3C devices are expected to enter a high prosperity phase

According to Zhitong Finance APP, Minsheng Securities released a research report stating that Apple (AAPL.US) recently announced its "Made in America Plan" and officially issued invitations for its September new product launch event. From the product planning perspective for the next three years, Apple may initiate a new round of product innovation cycles. The launch of Apple's expansion plan in the U.S. combined with the start of a new product innovation cycle is expected to drive the 3C device sector into an upward cycle of prosperity. It is recommended to pay attention to domestic 3C device companies: Bozhong Precision (688097.SH), Liande Equipment (300545.SZ), Lianying Laser (688518.SH), Jieput (688025.SH), and Genesis (300083.SZ), among others.

The main points of Minsheng Securities are as follows:

Apple (AAPL.US) increases investment in the U.S. and announces a new "Made in America Plan."

On August 6 local time, Apple increased its investment in the U.S. and announced a new "Made in America Plan," with a total investment of $600 billion in the U.S. over the next four years, constituting Apple's largest investment in the U.S. in history. Although relocating the supply chain back to the U.S. may raise iPhone manufacturing costs and require significant time investment, under tariff pressure, Apple ultimately made a compromise. The current "Made in America Plan" includes cooperation with ten local U.S. companies, including Corning and Applied Materials.

Apple may initiate a new round of product innovation cycles.

In addition to announcing the "Made in America Plan," Apple also recently officially issued invitations for its September new product launch event, which is expected to showcase multiple new products across three product lines, including the iPhone 17 series. The biggest change this year is the new iPhone 17 Air model, which replaces the Plus model that has been in the market for many years, focusing on a lightweight design and potentially eliminating the SIM card slot in most markets. This model may lead the smartphone market back to a lightweight design trend and accelerate the existing eSIM business reform among China's three major telecom operators, fully speeding up the process of card-free usage. From the product planning perspective for the next three years, Apple may initiate a new round of product innovation cycles, including significant aesthetic innovations for iPhone products from lightweight to foldable to all-glass designs, as well as the launch of innovative products such as a screen-equipped HomePod, screenless smart glasses, desktop robots, lightweight headsets, AirPods with cameras, foldable iPads, and Mac all-in-one devices, as well as home security systems.

Production line relocation & new products poised for launch, 3C devices are expected to enter a high prosperity phase.

Due to the high dependence of Apple's supply chain on domestic manufacturers in the equipment sector, the firm believes that regardless of whether Apple's production lines are relocated, the demand for 3C devices is expected to increase under the expansion of production. The "Made in America Plan," combined with numerous new products planned for the coming years, will gradually come to fruition, and the 3C device sector is expected to enter a state of high prosperity. Currently, the core domestic 3C device companies include: 1) Bozhong Precision (688097.SH): The company is deeply bound to major clients and has already provided samples for the production equipment of the new generation AR/MR for major clients; 2) Liande Equipment (300545.SZ): Apple is one of the company's clients, and the introduction of foldable screens is expected to significantly increase the demand for flexible AMOLED, thus the launch of the foldable iPhone is expected to drive the growth of the company's display device production equipment 3) Lianying Laser (688518.SH): The company's small steel shell battery welding equipment has continuously received orders from leading international customers; 4) Jieput (688025.SH): The company continues to deliver mobile phone camera module testing equipment to customers, and the new generation VCSEL module testing equipment has also received customer orders; 5) Genesis (300083.SZ): The company's flagship product, the drilling and tapping machine, has been recognized by leading domestic consumer electronics structural component companies such as Foxconn and Luxshare Precision, leading the industry in market share.

Risk Warning: Macroeconomic uncertainty risk; intensified market competition risk; policy change risk