iPhone 12... Component Stocks Can't Rise Together

Despite Complete Sell-Out of First Pre-Order Batch, Related Stocks Decline

[Asia Economy Reporter Minji Lee] Although Apple's first 5th generation (5G) smartphone, the 'iPhone 12' series, continues to perform well in the market, the stock prices of its component suppliers are struggling.

According to the Korea Exchange on the 23rd, as of 9:40 a.m., BAEH, which supplies organic light-emitting diode (OLED) related components to Apple, traded at 22,000 KRW, down 0.9% from the previous day. At the same time, ITM Semiconductor, which supplies secondary battery protection circuits, recorded 53,200 KRW, down 1.12% from the previous day.

In the KOSPI market, LG Innotek, which supplies camera modules, maintained the same stock price level as the previous day, while Silicon Works, which supplies panels through LG Display, fell 2.96%. Although the iPhone 12 series achieved good results in pre-orders, raising expectations for related component stocks' performance, the stock prices have not shown a clear direction.

On this day, the iPhone 12 and iPhone 12 Pro sold out their first batch immediately upon the start of domestic pre-orders. Previously, the iPhone 12 series was estimated to have surpassed the record of the previous iPhone 11 in pre-orders in the first release countries (such as the United States and China). According to U.S. media, the first-day pre-order volume of the iPhone 12 reached 2 million units, an increase of about 150% compared to the same period for the previous model. In China, the largest demand country for the iPhone 12, pre-order volumes exceeded those of the iPhone 11 last year. More than 1.6 million people rushed to pre-order on the first day alone, surpassing the three-day pre-order numbers for the iPhone 11 series.

The iPhone 12 is expected to stimulate accumulated replacement demand and set a shipment record of up to 80 million units this year. Siwonbin, a researcher at Yuanta Securities, said, "72% of iPhone users worldwide are using models from 2017 or earlier," adding, "Even in China, demand for Apple electronic products is expected to exceed supply ahead of major shopping promotions such as Singles' Day, Black Friday, and Christmas." With the rapid expansion of 5G networks in China, strong demand growth is anticipated.

The securities industry expects that rising shipment volumes will bring additional benefits to component suppliers. Especially since the iPhone 12 launch was delayed by about a month compared to previous years, it is advised to keep an eye on these stocks until next year. Changmin Lee, a researcher at KB Securities, said, "Apple's smartphone shipments in the second half of the year are expected to reach 120 million units, a 60% increase compared to the first half," and added, "Attention should be expanded to major component suppliers such as BAEH and Silicon Works, which can benefit from the ripple effects of the iPhone's success."

This content was produced with the assistance of AI translation services.