Apple(US:AAPL) CMS·2025-05-22 03:03Investment Rating - The report maintains a positive outlook on the consumer electronics sector, suggesting a focus on AI edge applications and automotive intelligence as key investment themes [1]. Core Insights - Recent easing of tariff pressures allows for a focus on innovation in AI and undervalued quality companies within the consumer electronics sector [1]. - Apple is expected to minimize tariff impacts through inventory and supply chain optimization, with a significant portion of production now in India and Vietnam [2][21]. - The report highlights the potential for growth in the smartphone, PC, and wearable segments driven by AI innovations and government subsidies [2][3][4]. Summary by Sections Terminal Trends and Innovation Tracking - Smartphone shipments in Q1 increased by 1.5% year-on-year, with a notable rise in China due to government subsidies [2]. - PC shipments grew by 4.9% year-on-year in Q1, driven by pre-emptive shipping to counter tariffs and AI innovations [3]. - Wearable devices, particularly AI glasses, saw a significant increase in shipments, with a 216% year-on-year growth in Q1 [4]. Industry Chain Tracking - The easing of tariff negotiations is seen as a turning point for the industry, with a focus on AI edge and cloud-side innovations [12]. - Domestic SoC companies reported high growth in Q1, with major international firms accelerating their AI application layouts [13]. - The battery sector is entering a seasonal slowdown, but long-term trends indicate innovation driven by AI applications [17]. Investment Recommendations - The report suggests focusing on companies that can benefit from Apple's global layout and cost efficiency, particularly in the supply chain [21]. - For the Android chain, the impact of tariffs is minimal, and there are opportunities for growth through AI innovations and subsidy policies [22]. - The automotive sector is highlighted for its rapid development in smart driving technologies, with significant opportunities in the supply chain [24]. - The XR segment is expected to see long-term growth, particularly in AR applications, with a focus on companies involved in Apple's Vision Pro and related products [25].