Apple(US:AAPL) Zhi Tong Cai Jing·2025-11-19 00:21Core Insights - Apple's iPhone 17 series has achieved a strong start in China, capturing 25% of the smartphone market share in October, with a year-on-year sales increase of 37% [1] - The overall smartphone sales in China grew by 8% in October, driven by Apple's performance and local brands [1] - The iPhone 17 series is expected to continue its strong sales momentum, especially with the upcoming holiday season [1] Production and Supply Chain - Apple has planned sufficient production capacity for the iPhone 17 series, with an estimated production of 54 million units in Q3 and an increase to 79 million units in Q4, totaling 133 million units for the year [2] - The production assembly of the iPhone 17 series is split between China (84%) and India (14%), highlighting China's critical role in the supply chain [2] - Over 50% of the 187 core companies in Apple's 2024 supply chain list are based in China, indicating the importance of Chinese suppliers [2] Financial Performance - Apple's Q4 2025 revenue reached $102.466 billion, an 8% increase from $94.930 billion in the same period last year, with net profit soaring by 86% to $27.466 billion [2] - CEO Tim Cook anticipates record revenue for the quarter ending in December, marking the best performance since the iPhone's launch [2] Market Performance - The iPhone 17 series has also seen a 14% increase in sales in the U.S. market compared to the previous generation within the first ten days of launch [3] - The base model of the iPhone 17 has become a significant growth driver in China, with sales nearly doubling compared to the previous model [3] - The success of the iPhone 17 series is expected to lead to a new cycle of growth for Apple's supply chain in China, with more new products anticipated in 2026-2027 [3] Related Stocks - Lens Technology (蓝思科技) has been rated "outperform" with a target price of HKD 36.5, benefiting from the innovation cycle of major clients [4] - GoerTek (高伟电子) derives 98.1% of its revenue from Apple, showcasing strong customer loyalty and collaboration within the supply chain [4] - BYD Electronics (比亚迪电子) is positioned to benefit from increased production for Apple products, including potential battery supply [4] Future Outlook - Companies like AAC Technologies (瑞声科技) and Sunny Optical (舜宇光学科技) are expected to see profit margin improvements and increased demand for components due to the new iPhone series and a recovering Android market [5]