Understanding the Market | Apple concept stocks lead the decline, Q TECH falls nearly 5%, COWELL falls nearly 4%
Apple concept stocks generally fell, with FIH down 6.22%, FIT HON TENG down 5.51%, Q TECH down 4.82%, and COWELL down 3.95%. Renowned analyst Ming-Chi Kuo pointed out that the demand for iPhone Air is lower than expected, and the supply chain will reduce shipments and capacity, with an expected capacity reduction of over 80% by the first quarter of 2026. Trade variables also affect market sentiment, with Huafu Securities stating that tariffs have a limited impact on fruit chain equipment companies, and Apple may increase investment in new devices and new products
According to Zhitong Finance APP, Apple concept stocks have seen significant declines. As of the time of writing, FIH (02038) is down 6.22%, trading at HKD 18.1; FIT HON TENG (06088) is down 5.51%, trading at HKD 5.32; Q TECH (01478) is down 4.82%, trading at HKD 14.01; COWELL (01415) is down 3.95%, trading at HKD 31.62; BYD Electronics (00285) is down 3.79%, trading at HKD 37.04.
In terms of news, well-known Apple analyst Ming-Chi Kuo stated that the demand for iPhone Air is lower than expected, and the supply chain has begun to reduce shipments and production capacity. The supply chain's capacity is expected to shrink by more than 80% by Q1 2026, and some components with longer lead times are expected to cease production by the end of 2025. This indicates that the existing Pro series and standard models have already well covered most of the high-end user demand, making it difficult to find new market segments and positioning (attempts from mini, Plus to the current Air have not been successful).
Additionally, trade variables are disrupting market sentiment. Huafu Securities previously pointed out that the impact of tariffs on Apple supply chain equipment companies should not be overestimated, as Apple has very strict requirements for its suppliers, and domestic Apple supply chain companies are irreplaceable. For equipment companies, Apple may allocate more resources to new equipment and processes that are beneficial for cost reduction and efficiency improvement, such as flexible automation and 3D printing; or accelerate the promotion of new products like high-end models, foldable screens, and smart glasses, which will also benefit the establishment and upgrading of related production lines
