Core Insights - Apple has delayed the release of the next-generation iPhone Air due to disappointing sales of the current model, leading to a halt in production lines [1][3][12] - The iPhone Air accounted for only 3% of total iPhone sales in September, significantly lower than the iPhone 17 Pro and iPhone 17 Pro Max, which accounted for 9% and 12% respectively [7][11] Production and Sales Impact - Manufacturing partners Foxconn and Luxshare have drastically reduced or halted production of the iPhone Air, with Foxconn dismantling most of its production lines and Luxshare ending its production run in October [5][4] - Only about 10% of Apple's iPhone manufacturing capacity was allocated to the Air, yet this limited output has been difficult to sell [5] Product Features and Consumer Feedback - The iPhone Air was criticized for its single-camera setup, short battery life, and weaker speakers compared to Pro models, which contributed to its lackluster sales [4][6] - Engineers were exploring a redesign for the iPhone Air 2, which would include a second rear camera and improvements in battery and cooling technology [8][11] Future Prospects - Although the iPhone Air 2 was initially planned for a fall 2026 release, it has now been removed from the release schedule without a new date set, indicating uncertainty in its future [1][14] - Some engineers and suppliers are still working on the device, suggesting a potential launch in spring 2027 alongside other iPhone models [11]

Summary of Greater China Technology Hardware Conference Call Industry Overview - The conference focuses on the Greater China Technology Hardware sector, particularly emphasizing advancements in AI technology hardware for 2026 [5][7]. Key Insights and Arguments - **AI GPU and ASIC Server Opportunities**: There are significant opportunities in AI GPU and ASIC server/rack design upgrades, with major design upgrades anticipated for the GB300, Vera Rubin platform, and Kyber architecture [5][7]. - **AMD Helios Server Rack**: The AMD Helios server rack project is gaining traction, indicating a positive trend in server hardware demand [5][7]. - **Enhanced Computing Power**: AI ASIC servers are expected to enhance computing power and increase rack density, which is crucial for data centers [5][7]. - **Power Solution Upgrades**: A shift towards 800V HVDC power architecture is noted, with growing adoption of liquid cooling solutions [5][7]. - **PCB/Substrate Capacity Expansion**: There is a wave of capacity expansion in PCB/substrate to support ongoing design upgrades, which is essential for meeting future demand [5][7]. - **Data Network Improvements**: Upgrades in data and power interconnects are expected to increase data network transmission speed and capacity [5][7]. - **Consumer Electronics Demand**: Demand for consumer electronics remains lukewarm, with anticipation for upcoming foldable iPhone models in the second half of 2026 [5][7]. - **AI Smartphone and PC Developments**: The potential for AI smartphones and AI PCs is on the horizon, indicating a shift in consumer technology [5][7]. - **Supply Chain Reorientation**: The status of supply chain reorientation and its potential impact on the industry is under consideration [5][7]. Stock Recommendations - Key stock ideas include companies involved in AI server hardware such as Wistron, Hon Hai/FII, Delta Electronics, and others [5][7]. - For Edge AI, companies like Xiaomi, Lenovo, and Luxshare are highlighted as potential investment opportunities [5][7]. Valuation Comparisons - A detailed valuation comparison of various companies within the sector is provided, including metrics such as closing price, price target, market cap, EPS estimates, P/E ratios, and trading volumes [7]. - Notable companies include: - **Lite-On Tech**: Closing price of 179.50 with a price target of 150.00 and a market cap of 13.528 billion [7]. - **Delta Electronics**: Closing price of 995.00 with a price target of 1288.0 and a market cap of 84.075 billion [7]. - **Hon Hai**: Closing price of 257.50 with a price target of 250.0 and a market cap of 116.970 billion [7]. - **Foxconn Tech**: Closing price of 71.50 with a price target of 54.00 and a market cap of 3.290 billion [7]. Additional Important Points - The report emphasizes the importance of considering Morgan Stanley Research as one of several factors in investment decision-making due to potential conflicts of interest [2][3]. - Analysts involved in the report are not registered with FINRA, which may affect their communication and trading practices [3]. This summary encapsulates the key points from the conference call, providing insights into the Greater China Technology Hardware sector and potential investment opportunities.

Supply Chain Dynamics - Foxconn is favored as a supplier for the foldable iPhone hinge [1] - Luxshare is identified as a potential supplier [1] - Supplier shifts are occurring [1] Financial Implications - Lower-than-expected ASP (Average Selling Price) favors Apple [1] - Reassessing the contribution to SZS (likely referring to a specific company or sector) [1] - Reassessing the contribution to Amphenol (a company in the interconnect systems industry) [1]

Group 1 - Apple's entry into the foldable smartphone market is anticipated to generate $65 billion in revenue and high-single-digit EPS gains by 2029, despite launching in 2026, six years after Samsung's first foldable phone [1][2] - Currently, foldable smartphones represent approximately 1.5% of global smartphone sales, but Apple's introduction could significantly change market dynamics, especially with its premium pricing strategy [2][5] - Samsung currently holds a 56% market share in the foldable segment, but Apple's loyal customer base and successful history with late market entries could challenge this dominance [3][4] Group 2 - JPMorgan forecasts Apple will sell between 10 to 15 million foldable iPhones in 2027, increasing to 45 million units by 2029, with a significant portion of early adopters potentially being Android switchers [4][5] - The presence of Apple in the foldable market could lead to mainstream adoption, driving down price premiums as volume increases, which may benefit companies like Amphenol Corp and Corning Inc through increased hardware content [5]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Asian Technology Sector - **Current Trends**: Asian Tech stocks have rebounded significantly from the tariff-related sell-off in April, primarily driven by the AI sector [3][5] Core Insights and Arguments - **Earnings Revisions**: Overall Asian Tech earnings have seen an 18% upward revision year-to-date, mainly led by large-cap AI-related technology companies [3][5] - **Future Projections**: Continued upward revisions in tech earnings are expected through 2025, supported by the resolution of AI supply chain issues and well-flagged foreign exchange (FX) challenges [3][5] - **Market Growth**: Despite macroeconomic concerns, Asian Tech stocks are projected to increase by another 15-20% by the end of the year [3][5] - **AI Sector Leadership**: The AI complex is anticipated to lead the upcycle, with growth in datacenter capital expenditures (capex) expected in 2025 and increased confidence in growth for 2026 [3][5] - **Non-AI Sector Caution**: Selectivity is advised in the non-AI space due to a deceleration in year-over-year growth in most consumer tech segments in the second half of 2025, as the effects of China consumption subsidies and tariff pull-in fade [3][5] - **Emerging Themes**: Towards the end of 2025, new themes such as the Foldable iPhone product cycle and smart glasses may gain market support within the non-AI sector [3][5] Positive Catalysts for Asian Tech Stocks 1. Reinforcement of 2026 datacenter AI capex growth [3][5] 2. Potential US approval for China-specific NVIDIA AI GPU models [3][5] 3. Better-than-seasonal non-AI demand in the second half of 2025, as expectations have been reset to sub-seasonal levels [3][5] Stock Recommendations - **Preferred Stocks**: TSMC, SK Hynix, Advantest, and Delta among large-cap tech [3][5] - **Cautious Outlook**: More guarded on SEC, Xiaomi, and Mediatek in the near term, but maintain an overweight (OW) position on SEC due to improving progress in High Bandwidth Memory (HBM) [3][5] - **Top Picks**: Quanta is highlighted as a top pick among NVIDIA-related server Original Design Manufacturers (ODMs) [3][5] - **Smaller Cap Recommendations**: Asmedia, ASPEED, Chroma, AMEC, and ACMR are recommended, while SMIC, VIS, UMC, GUC, Realtek, Parade, GlobalWafers, USI, Transsion, and Nikon are advised to be avoided [3][5] Additional Important Insights - **Market Sentiment**: The overall sentiment remains positive for the AI sector, with expectations of revenue momentum picking up in the second half of 2025 [3][5]

Apple Foldable iPhone Updates:1. Assembly supplier Foxconn is expected to officially kick off the project in late 3Q25 or early 4Q25. As of now, many component specifications (including the hinge, which has drawn considerable market attention) have yet to be finalized.2. The foldable display is one of the few components with finalized specifications and serves as a good reference for estimating potential shipments. Samsung Display (SDC) plans to build annual production capacity for 7-8 million foldable pane ...

Core Viewpoint - Apple Inc is reportedly set to launch its first foldable devices, including a foldable iPhone, as early as 2026, which could help the company recover from declining iPhone sales [1][2][3]. Group 1: Product Development - Apple is working on two new foldable devices, with at least one expected to enter mass production in the second half of 2026 [3]. - The foldable iPhone is projected to cost $2,000 or more, according to analysts [3]. - In addition to the foldable iPhone, Apple is developing a foldable device with an 18-inch screen, likely a new Mac or iPad [4]. Group 2: Market Context - Apple's iPhone revenue fell from $69.7 billion to $69.1 billion year-over-year, indicating a need for new growth avenues [1]. - The smartphone market is expected to recover in 2026, coinciding with the launch of Apple's foldable devices [3]. - Competitors like Samsung, Google, and Motorola have already released foldable phones, positioning Apple to test demand in this emerging segment [6][7]. Group 3: Consumer Sentiment - There are concerns about whether consumers are willing to pay a premium for foldable technology, especially after the rollout of Apple Intelligence AI features on the iPhone 16 did not meet user expectations [5]. - The foldable smartphone segment currently represents a small percentage of the overall market, but Apple's entry could significantly influence consumer preferences [7]. Group 4: Stock Performance - Apple stock closed at $214, up 0.24%, with a year-to-date decline of 12.2% and a 23.2% increase over the last year [8].

Apple Plans a Foldable iPhone. Here’s Why and How Much It Could Cost. ...

TF International Securities analyst Ming-Chi Kuo noted Apple Inc’s AAPL first foldable iPhone as a credible AI-driven smartphone.As per the analyst, multimodal functionality and cross-app integration are the trends in AI device use cases.He said larger screens enhance the AI experience, enabling scenarios like chatting with a chatbot about travel plans while simultaneously viewing a full map app.Also Read: ChatGPT Parent OpenAI’s Specialized AI Agents Could Cost Up To $20 Thousand Per Month: reportKup expec ...