Apple's Chinese smartphone-component suppliers experienced significant gains in Friday trading following the announcement that iPhone demand in China remains robust, despite overall sales declining in that market.
Sunny Optical Technology
Sunny Optical Technology, known for producing camera lenses for iPhones, saw a 5.6% increase in stock price, reaching 69.10 Hong Kong dollars (US$8.83).
AAC Technologies
AAC Technologies, a leading manufacturer of smartphone acoustic components, gained 8.2% and reached HK$15.64.
Luxshare Precision Industry
Luxshare Precision Industry, responsible for manufacturing three of the iPhone 15 models, saw a 1.9% increase in stock price to 32.13 yuan (US$4.39).
Apple recently reported its results for the fourth quarter ending Sept. 30, revealing sales of $89.50 billion. Revenue from iPhones reached $43.81 billion, compared to $42.63 billion in the same period the year before.
According to Morningstar analysts, these strong iPhone sales indicate that demand for the iPhone 15 series will remain resilient throughout the year, despite the shaky macroeconomic conditions.
While overall Apple sales in China declined by 2.5% compared to the previous year, CEO Tim Cook attributed this decrease to poor MacBook and iPad sales. However, he highlighted that mainland China achieved a quarterly record for iPhone sales during this period and that four out of the top five best-selling smartphones in urban China were iPhones.
Wedbush analysts also emphasized that the weaker MacBook and iPad sales in China overshadow the underlying growth story, which is strong demand for iPhones in the country.
Although Apple enjoys strong iPhone demand in China, it still faces challenges from various fronts. Rival company Huawei Technologies made an unexpected comeback with its new 5G smartphone model that utilizes advanced, domestically produced chips. This came after U.S. sanctions temporarily cut off Huawei's supply of critical chips.
Additionally, The Wall Street Journal reported in September that China has instructed central government agencies and state-owned companies to refrain from using iPhones for work or business purposes.
