Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling 0.79% to 25,952.4 points, and the Hang Seng Technology Index dropping 1.76% to 5,818.29 points, amid a total trading volume of HKD 239.99 billion [1] - Dongwu Securities indicated that the Hong Kong market is entering an adjustment phase towards the end of the year, although it remains in a medium to long-term upward trend [1] Blue-Chip Stocks Performance - Baidu Group (09888) rose 2.87% to HKD 121.9, contributing 6.83 points to the Hang Seng Index, with weekly orders for its service exceeding 250,000 [2] - Other notable blue-chip movements included Kang Shifu Holdings (00322) up 3.27%, and China Merchants Bank (03968) up 2.37%, while Zijin Mining (02899) fell 5.36% [2] Sector Performance - The technology sector saw most large-cap stocks decline, with Alibaba down 2.57% and Tencent slightly up by 0.16%, while Baidu gained nearly 3% [3] - The cryptocurrency sector faced significant pressure, with major declines in related stocks, and Bitcoin prices dropping below USD 105,000 [4] - Apple-related stocks generally fell, with notable declines in companies like Q Technology (01478) and BYD Electronics (00285) [4][5] Lithium Sector - Lithium stocks continued to decline, with Ganfeng Lithium (01772) down 5.85% and Tianqi Lithium (09696) down 4.68% [6] - The price of lithium carbonate futures fell over 4%, with market speculation surrounding the production timeline of CATL's projects [7] Notable Stock Movements - Aide New Energy (02623) surged 290% after announcing a major share sale [8] - Yum China (09987) rose 3.83% ahead of its upcoming financial results [8] - Sanhua Intelligent Controls (02050) fell 6.4% after a downgrade by Goldman Sachs, citing overly optimistic market expectations for its humanoid robot business [9]

Core Viewpoint - Apple has significantly reduced the prices of its iPhone 16 series ahead of the "6·18" shopping festival, with discounts exceeding 1,000 yuan, in response to disappointing sales performance in the Chinese market [1][6]. Price Reduction Details - Apple announced a price cut of $160 (approximately 1,313.06 yuan) for all storage versions of the iPhone 16 Pro Max and a $176 (approximately 1,445.27 yuan) reduction for the 128GB version of the iPhone 16 Pro [1]. - On platforms like JD.com, the iPhone 16 Pro 128GB version, originally priced at 7,999 yuan, is now available for 5,499 yuan after applying national subsidies, marking a reduction of 2,500 yuan [2]. - The iPhone 16 Pro 128GB version on Tmall's official Apple Store is also priced at 5,499 yuan, reflecting a 31% discount from its original price [4]. Market Response - The price cuts have led to a surge in demand, with the subsidized iPhone 16 Pro 128GB version reportedly selling out quickly [4]. - Various platforms, including Pinduoduo, have also reported significant price drops for different iPhone models, with some versions seeing reductions of over 2,000 yuan [4]. Sales Performance - Apple's sales in the Greater China region have been declining, with a reported revenue of $15.033 billion for Q4 of fiscal year 2024, marking the only region with a year-on-year decline [6]. - In Q1 of fiscal year 2025, revenue from the Greater China region was $18.51 billion, down 11% year-on-year, and in Q2, it further decreased to $16 billion [6]. - According to IDC, Apple ranked fifth in smartphone shipments in China, with a 9% year-on-year decline, while competitors like Xiaomi, Huawei, OPPO, and Vivo continue to dominate the market [6]. Strategic Adjustments - Apple has been implementing multiple price reductions since the launch of the iPhone 16 series, indicating a shift towards regular promotions as demand wanes [8]. - The company is also exploring new product innovations, such as foldable smartphones, which may be launched depending on the sales performance of the iPhone [9].

Core Insights - In Q1 2023, China's foldable smartphone shipments reached 2.84 million units, marking a year-on-year growth of 53.1%, significantly outperforming the overall smartphone market growth of 3.3% [1][9] - Huawei captured 76.6% of the foldable smartphone market share, a remarkable increase of 32.5 percentage points year-on-year, indicating its dominant position in the foldable market [1][3] - The overall domestic market penetration rate for foldable phones was approximately 4%, up by 1.3 percentage points year-on-year, reflecting the increasing acceptance of foldable technology among consumers [1][4] Market Dynamics - Huawei's significant market share increase is attributed to its product release schedule and improved supply chain, with the launch of Mate X6 and Pura X contributing to its success [3][4] - Other Android manufacturers like Honor, OPPO, and Xiaomi have struggled to gain substantial market share, with none exceeding 30%, despite releasing competitive products [6][9] - The high-end foldable smartphone market is characterized by a niche consumer base that is less price-sensitive and more focused on brand strength and technological innovation [6][10] Competitive Landscape - The potential entry of Apple into the foldable smartphone market remains a critical variable, as it could intensify competition and impact Huawei's market position [1][9] - Apple's recent decline in shipments by 9% in China contrasts with the growth of competitors like Xiaomi (40%) and Huawei (10%), indicating increasing pressure on Apple in the high-end market [9][10] - The success of foldable smartphones hinges on the ability of manufacturers to innovate and enhance user experience, particularly in software optimization and ecosystem development [4][13] Future Outlook - Analysts suggest that if Apple does not enter the foldable market by 2026-2027, it may miss the opportunity to compete effectively [12][13] - The current trend indicates that while the growth rate of the foldable smartphone market may stabilize, there is still potential for slight growth driven by high-end market stability and product redefinition by brands like OPPO [13]