iPhone 17e和M4 iPad Air以积极的性价比策略亮相，对苹果供应链来说是正面消息。

aggressive value proposition ispositive to Apple supply chain iPhone 17e and M4 iPad Air debut with aggressivevalue propositionis positive to Apple supply chain Apple announced the iPhone17e and the M4 iPad Air, with spec/featureslargelyin-line with market expectations. That said,we have identified several majorpositives:1) iPhone 17e:thesame starting price at US$599 while doubling base China Technology Sector storage to 256GB(vs. 128GB starting iPhone16e storage);2) M4 iPad Air:massive performance leap with M4chip,an increased 12GB of RAMand N1/C1Xconnectivity chips at unchanged starting prices (US$599 for 11inch, US$799 for13inch);3) Verticalintegration: the debut of Apple's C1X modem and N1networkingchipwillacceleratetransition from third-party silicon, andincreasingadoption of in-house components will be positive to gross margin and supplychain management.Overall, we believeupdates to iPhone17e and M4 iPad Airshouldstrengthen Apple’s position inmid-endsmartphone and tablet segments, Alex NG(852) 3900 0881alexng@cmbi.com.hk Hanqing LIlihanqing@cmbi.com.hk particularlyin the midst ofindustry memory cost pressure.Holding stable pricesand product updates with latest specshouldattract more consumerstoApple Key spec/features in-line; Aggressive value proposition for iPhone 17e.Apple launched iPhone 17e with 3nm A19 chip, a single 48MP Fusion rear camerawith 2x optical-quality zoom,Ceramic Shield 2,and MagSafesupport. We believe maintaining US$599 price point while doubling the basestorage to 256GB is a highly aggressive move that is better than feared andwill be positive to replacement demand among budget-conscious users. The M4 iPad Airbrings Pro-level performance to the mainstream.The newM4 iPad Air offers a significant performance boost overpriorgeneration,featuring M4 chip and a 50% jump in unified memory to 12GB. This memoryupgrade is strategically designed to run complex Apple Intelligence modelsfaster on-device. The addition of Apple's N1 wireless chip for Wi-Fi 7 and C1X Recommend to accumulate on recent weakness.Top picks: Luxshare,FIT Hon Teng, AAC Tech.We expect restocking and market share gainswith this budget iPhone and mid-tier iPad will be positive to Apple supplychain in 1H26E, and product launchesin2H26E(iPhone Fold, iPhone 18upgrade Siri) will drive stronger upgrade cycles in 2026-27. We prefer Applenames with content/share gains, such as Luxshare (iPhone/Watch OEM/ Focus Charts Source:Apple,CMBIGM Source:Apple,CMBIGM Disclosures& Disclaimers Analyst Certification The research analyst who is primary responsible for the content of this research report, in whole or in part,certifies that with respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer; and (2)no part of his or her compensationwas, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and FuturesCommission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3) serve as an officer of any of the Hong CMBIGM Ratings BUY: Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of+15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM OUTPERFORM:Industry expected to outperform the relevant broad market benchmark over next 12 monthsMARKET-PERFORM:Industry expected to perform in-line with the relevant broad market benchmark over next 12 monthsUNDERPERFORM:Industry expected to underperform the relevant broad market benchmark over next 12 monthsCMB InternationalGlobal MarketsLimited Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important DisclosuresThere are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGM does not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate