On June 12, Guolonghui reported that CICC's research report pointed out that Apple released the latest versions of multiple operating systems at the Worldwide Developers Conference. In addition, Apple launched Apple Intelligence for the first time, deeply cooperating with OpenAI to support on-device model training and inference, combining user needs and upgrading commonly used applications such as camera, photos, and memos. In addition, Apple also updated Siri voice assistant, enabling cross-app calling, which the bank believes will create a new generation of "intelligent entity". The bank also mentioned that Apple Intelligence is an important sign of Apple's entry into AI terminals, and with the computing power support of edge-cloud collaboration, privacy issues are expected to be addressed. At the same time, this Apple Intelligence only supports the iPhone 15 Pro series and M series iPad and MacBook products. The bank believes that the main reason is that model training and inference consume a lot of memory, and old models cannot experience related functions due to insufficient memory, so they are bullish on Apple's AI's ability to drive replacement waves. The bank believes that in the future, Apple's replacement cycle is expected to drive hardware average prices and shipment volume growth. For Hong Kong stocks, the bank recommends that investors pay attention to AAC Technologies, Cowell, Sunny Optical, and BYD Electronic; for A-shares, the bank recommends to focus on Luxshare Precision Industry, Lens Technology, Avary Holding, Foxconn Industrial Internet, Shenzhen Sunway Communication, Zhuhai Orbita, Suzhou Dongshan Precision Manufacturing, Universal Scientific Industrial (Shanghai) Co., Goertek Inc., Suzhou Anjie Technology, Zhejiang Crystal-Optech, Sunwoda Electronic, and Desay Corporation.