Apple suppliers surge as iPhone 17 production targets rise
Apple’s supply chain stocks rallied after the company reportedly increased its iPhone production targets for the first three quarters of fiscal year 2026 to 163 million units, reflecting growing confidence in demand for the iPhone 17 lineup and renewed momentum across the premium smartphone market.
The revised target represents an increase of roughly 10% compared with the previous year. Production plans for the second quarter of fiscal 2026 alone reportedly climbed to 63 million units, marking a sharp 31% year on year increase. The higher projections were driven by stronger than expected demand for the iPhone 17 Pro and Pro Max models, which continue to dominate Apple’s high end sales strategy.
The stronger outlook triggered a rally among Apple suppliers listed in Hong Kong. FIT Hon Teng, the Foxconn subsidiary specializing in connectors and charging modules, rose more than 9% during trading. AAC Technologies gained as much as 11.5% after analysts identified the company as one of the strongest positioned suppliers within Apple’s ecosystem, particularly in audio and thermal components. Sunny Optical Technology advanced more than 3%, while Lens Technology and Q Technology also posted gains exceeding 2%.
The production increase follows solid financial results from Apple’s iPhone business. Revenue generated by iPhone sales rose 21.7% during the company’s fiscal second quarter ending in March, reaching nearly $57 billion. Total quarterly revenue climbed to $111.2 billion, surpassing analyst expectations and reinforcing investor confidence in Apple’s premium product cycle despite broader weakness in the smartphone sector.
Industry data showed overall smartphone shipments in China declined 3.3% year on year during the first quarter of 2026. In contrast, iPhone shipments surged 33.3%, allowing Apple to capture an 18.9% market share. The figures signaled continued resilience for Apple in China’s competitive smartphone market, particularly among higher income consumers seeking premium devices and advanced features.
The broader technology sector also received fresh attention from developments linked to artificial intelligence powered smartphones. Analyst reports indicated that OpenAI accelerated plans for its first AI integrated smartphone, moving expected mass production from 2028 to the first half of 2027. The device is expected to rely on a customized MediaTek Dimensity processor manufactured using TSMC’s advanced 2 nanometer process technology.
Luxshare Precision has reportedly been selected as the exclusive manufacturing partner for the OpenAI smartphone project. Industry projections estimate cumulative shipments between 2027 and 2028 could reach 30 million units if development progresses on schedule. The accelerated timeline reflects intensifying competition among technology companies seeking to integrate generative artificial intelligence into next generation consumer hardware.
The renewed momentum surrounding Apple’s production strategy and emerging AI smartphone projects has reinforced investor optimism toward Asian technology suppliers, many of which remain deeply tied to global demand for premium mobile devices and semiconductor innovation.
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