Core Viewpoint - Bank of America indicates that the inventory of the iPhone 17 series in the second half of 2025 will slightly exceed 90 million units, remaining stable compared to the previous year's 90-95 million units, alleviating earlier market concerns of a 5%-10% year-over-year decline due to easing tariff pressures on Apple products [1] Group 1: New Model Inventory - The inventory for the iPhone 17 series in 2H25 is projected to be slightly over 90 million units, consistent with last year's figures [1] - Market concerns regarding a year-over-year decline of 5%-10% in inventory have diminished due to the easing of tariff pressures [1] - Key suppliers such as Largan and Zhen Ding reported stable sales in July, supporting the trend of steady inventory [1] Group 2: Specifications Upgrade for 2025-2026 - The iPhone 17 series will introduce a "Slim" version, replacing the Plus model, featuring a titanium shell and a single rear camera, with increased use of flexible printed circuit boards (FPC) [7] - The Pro series will see upgrades including a periscope lens and front camera enhancements to 48 million and 24 million pixels, respectively, along with a 50%+ increase in cover glass prices [7] - Benefiting suppliers include Cowell (camera modules), Lens Tech (cover glass), and Zhen Ding (PCB/FPC) [7] - The iPhone 18 series in 2026 is expected to introduce foldable models, significantly increasing the value for mechanical and PCB suppliers [7] Group 3: Stock Performance - Historical trends show that supply chain stock prices typically rise before new product launches and may retreat post-launch due to profit-taking; however, during upgrade cycles, stock prices tend to recover more quickly [11] - Since May, key suppliers' stock prices have averaged a 13% increase [11] - Future stock performance will depend on Apple's pricing strategy and consumer feedback, which will influence demand in Q4 [11]

Core Viewpoint - Bank of America indicates that Apple's supply chain is entering a significant upgrade cycle in 2025-2026, with attention on new model inventory, specification upgrades, and stock performance [1] Group 1: New Model Inventory - The inventory for the iPhone 17 series in the second half of 2025 is slightly above 90 million units, remaining stable compared to last year's 90-95 million units [2] - Market concerns about a year-on-year decline in inventory of 5%-10% have eased due to reduced tariff pressures on Apple products [2] - Key suppliers like Largan and Zhen Ding reported flat sales in July, supporting the trend of stable inventory [2] Group 2: Specification Upgrades - The iPhone 17 series will introduce a "slim" version, replacing the Plus model, featuring a titanium shell and a single rear camera, with increased use of flexible printed circuit boards (FPC) [10] - The Pro series will see upgrades including a periscope lens and front camera enhancements to 48 million and 24 million pixels, respectively, along with a 50%+ increase in cover glass average selling price [10] - Benefiting suppliers include Cowell (camera modules), Lens Tech (cover glass), Zhen Ding (PCB/FPC), Largan (lenses), and AAC (acoustics/thermal) [10][14] Group 3: Stock Performance - Historically, supply chain stock prices tend to rise before new product launches and may pull back post-launch due to profit-taking; however, during upgrade cycles, stock prices recover more quickly [15] - Since May, key suppliers' stock prices have averaged a 13% increase [15] - Future stock performance will depend on Apple's pricing strategy and consumer feedback, which will influence fourth-quarter demand [15] Group 4: Stock Recommendations - Lens Technology - H: Initiated coverage with a "Buy" rating and a target price of 26 HKD [17] - Lens Technology - A: Initiated coverage with a "Buy" rating and a target price of 29 CNY [17] - AAC Technologies: Upgraded to "Buy" with a target price of 57 HKD [17] - BYD Electronics: Downgraded to "Neutral" with a target price of 42 HKD [17] - Cowell: "Buy" rating with a target price of 35 HKD [17] - Zhen Ding: "Buy" rating with a target price of 185 TWD [17]