After experiencing a continuous two-day drop in stock prices,$FIT HON TENG (06088.HK)$Today, it rose sharply and rose more than 18% at one point in trading. As of press time, the increase was 18.03%, reporting HKD 3.6.

According to industry insiders from Apple's supply chain companies, the company recently received a slightly increased target guidance for the supply of the Apple iPhone 16 series. After the increase, the target guidance for the supply of iPhone 16 series this year is around 90 million units. Another industry insider from an Apple supply chain company said that Apple has indeed slightly raised the target guidance for the supply of iPhone 16 series.

Company executives of Apple's supply chain companies stated that during the 618 e-commerce promotion period in June, Apple took a price reduction promotion strategy. After the iPhone 15 series was reduced in price, sales volume increased significantly, which may have boosted Apple's sales expectations for the iPhone 16 series.

Stimulated by this news, Apple's stock price rose 0.65% overnight, setting a closing record for the fifth consecutive trading day, with a total market value close to 3.5 trillion US dollars, surpassing Microsoft and returning to the top spot in the US stock market.

With the strong performance of Apple's stock price, related stocks have also skyrocketed, including Fit Hon Teng. According to public information, the company is the world's leading professional precision component supplier. In addition, it is also a subsidiary of Foxconn.

At present, Fit Hon Teng's main businesses involve mobile phone components, network facilities, computers and consumer electronics, electric vehicles, system terminal products, and other fields. Goldman Sachs' research report pointed out that the shipment momentum of iPhone and AI servers are the key factors driving the future operational growth of Foxconn.

Other Apple concept stocks in the Hong Kong stock market have also risen in succession. As of the time of publication,$COWELL (01415.HK)$rose more than 6%,$SUNNY OPTICAL (02382.HK)$, $BYD ELECTRONIC (00285.HK)$rose more than 4%.

Why does the popularity of the Apple iPhone 16 series continue?

According to multiple reports, the upcoming Apple iPhone 16 is expected to bring many major updates, including upgrades to the imaging system, screen enlargement, chip jumping, universal high refresh rate screens, new operation and shooting buttons, and memory upgrades.

It is worth noting that last month, Apple announced at the Worldwide Developers Conference (WWDC) that it will provide ChatGP in the new series of AI functions for iPhone, iPad, and Mac.

In fact, the market generally bullish about AI and its new features push Apple's sales growth. As Citic Securities pointed out in a previous research report, on the basis of the continuously optimized AI experience, it is expected that Apple will lead a new round of upgrade cycles, which will be driven by AI technology.

The brokerage also pointed out that considering Apple's huge user base, it is expected that iPhone will usher in strong upgrade momentum in 2025. It is expected that from 2024 to 2026, iPhone shipments will reach 22.5 million, 24 million, and more than 250 million units respectively, entering an upward channel of shipments.

They also pointed out that according to statistics, as of 2023, the global stock of active iPhone devices is 1.46 billion units. Even without the 0.23 billion units of new iPhones shipped in 2023, the number of active devices is as high as 1.23 billion. Therefore, the driving force of the upgrade brought by the combination of AI experience and hardware exclusivity is worth looking forward to.

Editor/new