Apple becomes the second company with a market capitalization of trillions of dollars. Who benefits in the supply chain?

- Aug 04, 2018-

As of the close of the US stock market on August 2, 2018, the market value of Apple exceeded 1 trillion US dollars, becoming the world's first single market to break through trillions of dollars, and after China's oil, the world's second market value exceeded 1 A trillion dollar company.

 

The market value of PetroChina on the market on November 5, 2007 exceeded 7.1 trillion yuan (US$1.04 trillion), but it only lasted for a short time. Therefore, in terms of sustainable development, Apple will likely become the first substantial trillion dollar company in the global market.

 LCD Display.jpg

On the 1st of this month, Apple announced the best-performing third-quarter earnings in history. Benefiting from the strong growth of iPhone, Apple services and wearable devices, Apple's revenue for the quarter was US$53.365 billion, up 17% year-on-year; Diluted earnings per share were $2.34, a year-on-year increase of 40%. Net profit was $11.519 billion, up 32% year-on-year, far exceeding industry expectations, and the strongest quarter of Apple's growth in the past 11 quarters.

 

Since its listing in 1980, Apple’s market capitalization has increased 500 times. With the good performance of the iPhone, Apple's market value continued to advance by leaps and bounds in the past six years. For the most part, it has become the world's number one market leader, creating milestones and becoming the most profitable company in the world.

 

In the past few years, relying on the growth of smart phones, supply chain enterprises upstream of the mobile phone industry chain have developed rapidly. Among them, Apple's supply chain business performance has attracted special attention.

 

Apple's largest supply chain is basically in China. Apple's latest list of 200 global suppliers, the number of Chinese companies accounted for 85. Among them, there are 51 in Taiwan, 27 in mainland China and 7 in Hong Kong. Almost all major components of Apple products, including cameras, metal casings, and chips, are manufactured in Taiwan.

 

27 Chinese suppliers in mainland China include AAC, BOE, BYD, Hongming Shuangxin, Ultrasonic Electronics, Eton Electronics, Goer Acoustics, Hengmingda, Changdian Technology, Jinlong Electromechanical, Cossen Technology, Lansi Technology , Lixun Precision, Meiyingsen, Kaicheng Technology, Shandong Innovation, Shanghai Industrial Holdings, Desai Battery, Shenzhen Fuchengda, Oufeiguang, Xinwei Communication, Shenzhen Yutong Packaging, Anjie Technology, Dongshan Precision, Haowei Technology , Xin Wanda, lead the puzzle. Among them, BOE, Meiyingsen, Oufeiguang, Changdian Technology, Baicheng Industrial, Hengmingda and Kaicheng Technology are the first two companies to enter Apple's top 200 suppliers in 2018.

 

The seven Apple suppliers in Hong Kong include Huacai Printing, Guotai Daming, Yilisheng, Lianfeng, Jinqiao Aluminum Profile, Bourne Optics, and Yingcheng Enterprise. Although the seven companies are headquartered in Hong Kong, their production plants are all located in mainland China. Yingcheng Industrial, which makes molds and plastic parts, is also the first to enter Apple's top 200 suppliers in 2018.

 

At present, the biggest contribution to Apple's performance is still the iPhone. The innovation of Apple's next-generation iPhone is mainly comprehensive display technology, 3D imaging technology, and wireless transmission technology. Therefore, suppliers related to these three innovations will benefit in the future. More.

 

The comprehensive screen design concept of the iPhone has brought the form of mobile terminal products into a new era. The flexible OLED display is superior to the LCD display in terms of display effect and lightness, and is a shortcut for the differentiation of high-end models. On the flexible OLED panel, the domestic panel leader BOE and the comprehensive screen heterosexual cutting laser equipment supplier Hanzu Laser two companies, whether it is the future demand from the iPhone, or influenced by Apple, the Android camp mimics the demand, Both BOE and Dazu Laser will benefit from the positive effects of the upgrade of the comprehensive screen display technology of smart phones.

 

In the 3D imaging technology segment, CCM leader Oufei Technology will benefit from the module processing order revenue, while Crystal Optoelectronics will gain more performance growth on IR filter orders.

 

In addition, wireless transmission technology upgrades include 5G mobile networks, wireless charging, and wireless Bluetooth headsets. Among them, 5G shift multi-network upgrade, Xinwei Communication and Lixun Precision will obviously benefit. The upgrade of the wireless Bluetooth headset technology represented by Air Pods will also make the headset an important acoustic product for supporting mobile phones, and the deep layout of Lixun Precision will remain the biggest beneficiary.

 

As for the wireless charging technology upgrade, beneficiary manufacturers in addition to Xinwei Communications, Lixun Precision, BYD, as well as Sunlord Electronics, Tanaka Seiki, which has just entered the Apple supply chain this year, and Dongshan Precision, which provides FPC and PCB boards. , double glass body supplier Lansi Technology and Berne Optics.