Minsheng Securities: Apple Inc. (AAPL.US) Expands Production in the United States and Opens a New Cycle of Innovation, 3C Devices Expected to Enter a High Business Cycle.

Minsheng Securities released a research report stating that Apple Inc. recently announced its "Made in America" plan and officially issued invitations for its September new product launch event. Looking at the product planning for the next three years, Apple Inc. may embark on a new cycle of product innovation. The launch of Apple Inc.'s plan to expand production in the U.S. combined with the start of a new product innovation cycle is expected to drive the consumer electronics sector into a period of prosperity. It is recommended to pay attention to domestic consumer electronics companies such as Bozhon Precision Industry Technology (688097.SH), Shenzhen Liande Automatic Equipment (300545.SZ), Shenzhen United Winners Laser Co., Ltd (688518.SH), Shenzhen JPT Opto-Electronics (688025.SH), and Guangdong Create Century Intelligent Equipment Group Corporation (300083.SZ). The main points of Minsheng Securities are as follows: Apple Inc. (AAPL.US) has announced additional investments in the U.S. and a brand new "Made in America" plan. On August 6th, local time, Apple Inc. announced additional investments in the U.S. and a brand new "Made in America" plan. Over the next four years, the total investment in the U.S. will reach $60 billion, making it the largest investment Apple Inc. has ever made in the U.S. Although relocating the supply chain back to the U.S. may raise iPhone manufacturing costs and require a higher time cost, under the pressure of tariffs, Apple Inc. has ultimately compromised. The now launched "Made in America" plan includes cooperation with 10 U.S. companies, including Corning Inc. and Applied Materials. Apple Inc. may start a new cycle of product innovation. In addition to the announcement of the "Made in America" plan, Apple Inc. recently officially released invitations to its September new product launch event, expecting to showcase multiple new products in three product lines, including the iPhone 17 series. The biggest change this year is the new model iPhone 17 Air, which replaces the Plus model that has been around for years, featuring a lightweight design, and may cancel the SIM card slot design in most markets. This model may lead the smartphone market back to a trend of lightweight design and drive the reform of existing eSIM services by China's three major telecom operators, accelerating the overall process of going cardless. Looking at the product planning for the next three years, Apple Inc. may start a new cycle of product innovation, including significant exterior innovations for the iPhone, from lightweight to foldable to all-glass, as well as the launch of innovative products such as HomePod with a screen, screenless smart glasses, desk-mounted Siasun Robot & Automation, lightweight headsets, camera-equipped AirPods, foldable iPad and Mac two-in-one devices, and home security systems. With the relocation of production lines and new product momentum, the consumer electronics sector is expected to enter a period of high prosperity. Due to the high dependence of domestic manufacturers on the Apple Inc. supply chain in the device segment, the bank believes that regardless of whether Apple Inc.'s production lines are relocated, demand for consumer electronics is expected to increase under expanded production. The "Made in America" plan, combined with the gradual implementation of many new products planned for the next few years, is expected to push the consumer electronics sector into a period of high prosperity. Currently, core consumer electronics companies in China include: 1) Bozhon Precision Industry Technology (688097.SH): the company is deeply connected to major clients and has already provided production equipment for the new generation of AR/MR to major clients; 2) Shenzhen Liande Automatic Equipment (300545.SZ): Apple Inc. is one of the company's clients, and the introduction of foldable screens is expected to drive significant growth in the company's display device production; 3) Shenzhen United Winners Laser Co., Ltd (688518.SH): the company's small steel shell battery welding equipment has continuously received orders from international leading clients; 4) Shenzhen JPT Opto-Electronics (688025.SH): the company continues to deliver mobile phone camera module testing equipment to clients, and the new generation VCSEL module testing equipment has also received client orders; 5) Guangdong Create Century Intelligent Equipment Group Corporation (300083.SZ): the company's flagship product drilling and tapping machine has been recognized by leading domestic consumer electronics structural component companies such as Foxconn and Luxshare Precision Industry, leading the industry in market share. Risk Warning: Macroeconomic uncertainty risk; intensified market competition risk; policy changes risk.