According to Zhitong Finance APP, Tianfeng securities released a research report stating that domestic demand stimulation combined with product cycle resonance is bullish on the consumer electronics industry chain. It is bullish on Apple's AI product innovation cycle and its supply chain in China. Apple will launch Apple Intelligence at WWDC 2024, defining Apple AI. The industry chain in china plays a key role in Apple's supply chain, and there is optimism regarding Apple's accelerated entry into China and its investments in the region.

Terminal performance: Apple's mobile phone shipments in Q3 2024 showed solid growth, although the growth rate has slowed compared to Q2 2024. Android shipments also saw a slowdown in growth, affected by the base effect and the delayed launch of some high-end flagship models this year compared to last year. In Q3 2024, PC shipments reached 66.4 million units, with a year-on-year increase of 1.3%, maintaining the growth rate of 1.2% year-on-year compared to Q2. The PC market continues to show a slow recovery trend.

Subsidy policy: Jiangsu Province has launched a digital product subsidy program, with positive market feedback. There is ongoing optimism regarding the subsequent policy efforts to drive consumer electronics demand.

Semiconductors: A policy-driven approach is optimistic about semiconductors, with attention on the recovery elasticity of the design sector.MergerRestructuring.

Design: Global semiconductor sales have grown for six consecutive months, exceeding previous highs (December 2021) as of August. Pay attention to the profit elasticity brought by the cycle recovery and the AI trend. The application of AI at the edge is continuously being implemented, including smartphones, laptops, and wearables, which are expected to usher in a large-scale upgrade. SOC, as the core chip, is expected to yield significant returns.

Mergers and Acquisitions: The technology industry is becoming increasingly active in mergers and acquisitions, with attention on investment opportunities following the implementation of the Nine National Policies. Since early 2024, the number of IPOs terminated on the three major A-share exchanges has greatly increased. The policy environment for mergers and restructurings has continued to improve since the release of the National Nine Policies and the Science Eight Policies, and semiconductor 'hard technology' companies may continue to benefit.

Equipment and Materials: It is determined that the domestic substitution of semiconductors is likely to continue accelerating, and the investment opportunities in the semiconductor equipment and materials sector deserve attention. Potential international political instability is expected to increase market focus on the localization of equipment and materials. Domestic policies stimulating the technology industry are likely to effectively drive the acceleration of domestic substitution in the sector.

AI: Bullish on AI computing power investment, the GB200 uses copper cable backplane interconnects to drive the development of high-speed copper connection technology.

Cloud Capital Expenditure: Under the strong push of generative AI, global cloud service spending has grown year-on-year for the fourth consecutive quarter. In Q3 2024, global enterprises spent $84 billion on cloud infrastructure services, +23% quarter-on-quarter. AWS has fully launched its Amazon EC2 Trn2 instances powered by Trainium2 chips, offering 30% to 40% better cost-effectiveness compared to current GPU-based EC2 instances, which bolsters the outlook for the AI ASIC market share increase.

Copper Cables: Nvidia's GB200 adopts NVLink full interconnect technology, and copper cable solutions may become a future trend. There is a bullish outlook on the penetration rate improvement of cabinet system integration solutions, with backplane-side 112/224/448G interconnect copper connections likely becoming mainstream solutions.

Cyclical Products: Attention to the price elasticity of cyclical products.

Panels: The supply structure is clear combined with national subsidy policies, focusing on price increase opportunities in the first half of 2025 and the performance elasticity improvement of leading companies in the OLED business after mergers and acquisitions.

Passive components: bullish on the recovery of passive components' prosperity and driven by AI incremental demand, with AI PCs and AI servers boosting the usage of high-capacity MLCC.