Unmatched iPhone in Second Half, Component Stocks Also Starting to Rise

[Asia Economy Reporter Minji Lee] There is a growing expectation that the upward trend of iPhone component stocks will become more prominent in the second half of the year. This is based on the analysis that there is no competitor to stop the iPhone's dominance in the global smartphone market amid expanding iPhone demand.

According to industry sources on the 27th, Apple is scheduled to unveil four new iPhone 14 models at 10 a.m. on the 7th of next month (U.S. local time). The iPhone 14 will be released in four models equipped with 6.1-inch and 6.7-inch OLED displays (standard, Max, Pro, Pro Max), with the Mini model being discontinued.

The key difference from the previous generation is expected to be a significant improvement in camera functions for the first time in seven years. The front camera will feature OIS functionality, and the rear camera resolution will increase from 12 million pixels to 48 million pixels. The top two models are expected to eliminate the notch (M-shaped) design and adopt a punch-hole style, enabling a full-screen display.

In the past, iPhone component stocks often saw their prices fall after new product launches. However, this year is different. Following the iPhone 14 launch, the visibility of second-half earnings is expected to improve due to market share expansion, leading to anticipated stock price increases for component suppliers. Especially in the second half, there is no competitor to challenge the iPhone 14 in the global smartphone market, so the iPhone's dominance is expected to continue.

Looking at the initial order volume of iPhone 14 from Apple's component suppliers, the quantity from September to December this year is 93 million units, a 15% increase compared to 82 million units for the iPhone 13. Dongwon Kim, a researcher at KB Securities, explained, “Pre-orders for the iPhone 14 by Chinese distributors are at an all-time high,” and “The replacement demand for the iPhone 14 among U.S. consumers is expected to be higher than the previous generation (70% of users).”

The top preferred iPhone component stocks are LG Innotek and BH. Looking at the market share of the iPhone 14's top Pro series models, LG Innotek holds about 75%, and BH about 65%. The proportion of iPhone sales is about 80% for LG Innotek and 70% for BH.

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