Apple(US:AAPL) NORTHEAST SECURITIES·2025-11-14 09:15Investment Rating - The report maintains an "Outperform" rating for the industry, indicating a positive outlook for investment opportunities in the sector [6]. Core Insights - Apple is entering a significant product innovation cycle, with new product launches expected to drive sales growth. The FY2025 revenue is projected to reach $416.16 billion, reflecting a year-on-year increase of 6.43% [1][33]. - The introduction of Apple Intelligence is expected to enhance user experience through deep integration of software and hardware, leading to hardware upgrades and increased sales [2][56]. - The report highlights the potential for new product categories, including a foldable iPhone and smart home devices, which could open new growth avenues for Apple [3][4]. Summary by Sections Product Matrix and Financial Performance - The 2025 September product launch showcased a comprehensive refresh of Apple's product matrix, including the iPhone, Apple Watch, and AirPods, with significant advancements in camera technology and 5G support [1][20]. - FY2025 revenue growth is primarily driven by iPhone sales, which are expected to increase by 4.18% year-on-year, maintaining its status as the main revenue source for Apple [33][38]. Apple Intelligence and Hardware Upgrades - Apple Intelligence is deeply embedded in Apple's ecosystem, focusing on enhancing efficiency while protecting user privacy. It includes features like real-time translation and health monitoring, which require significant hardware upgrades [2][31][56]. - The A19 Pro chip in the iPhone 17 series boasts a 50 TOPS NPU, significantly enhancing AI capabilities, while the M5 chip in Macs shows a fourfold increase in GPU performance compared to its predecessor [2][64][69]. Future Growth Opportunities - The report anticipates the launch of a foldable iPhone by 2026 and a shift towards lighter wearable devices, such as Apple Glass, indicating a strategic pivot in product offerings [3][4]. - The investment recommendation emphasizes the potential benefits for supply chain companies like Luxshare Precision, Crystal Optoelectronics, and Lens Technology, which are expected to gain from Apple's product upgrades and innovations [4][5].