According to a report published by J.P. Morgan Chase, global smartphone shipments plummeted 22% year over year in the third quarter of 2026. The bank believes that with continued inflation in memory costs, demand will weaken or continue until the fourth quarter of 2026 and 2027. However, supply chain differentiation has intensified, and Apple's demand for high-end models is resilient, in contrast to Android manufacturers' pressure on shipments and profit margins. Regarding market concerns about the possibility of cutting orders for the iPhone 18 Pro/Pro Max, the bank's supply chain inspection showed that the overall production plan for the second half of 2026 remained largely unchanged, which meant that shipments increased by more than 10% year-on-year compared to the iPhone 17 high-end models. The bank believes that recent stock price adjustments ignore the resilience of Apple's demand, and that companies with high exposure to Apple's high-end models or diversified product portfolios are better able to withstand the downturn. In terms of coverage, the bank is more optimistic about Lixun Precision, Gaowei Electronics, and Ruisheng Technology.

According to a report published by J.P. Morgan Chase, global smartphone shipments plummeted 22% year over year in the third quarter of 2026. The bank believes that with continued inflation in memory costs, demand will weaken or continue until the fourth quarter of 2026 and 2027. However, supply chain differentiation has intensified, and Apple's demand for high-end models is resilient, in contrast to Android manufacturers' pressure on shipments and profit margins. Regarding market concerns about the possibility of cutting orders for the iPhone 18 Pro/Pro Max, the bank's supply chain inspection showed that the overall production plan for the second half of 2026 remained largely unchanged, which meant that shipments increased by more than 10% year-on-year compared to the iPhone 17 high-end models. The bank believes that recent stock price adjustments ignore the resilience of Apple's demand, and that companies with high exposure to Apple's high-end models or diversified product portfolios are better able to withstand the downturn. In terms of coverage, the bank is more optimistic about Lixun Precision, Gaowei Electronics, and Ruisheng Technology.