[Click eStock] "Domestic Parts Companies Benefit from Apple's AI Platform Transition"

Daishin Securities announced on the 12th that the transition of Apple's artificial intelligence (AI) platform is expected to benefit domestic component companies in the second half of the year.

Apple unveiled its AI service, 'Apple Intelligence,' at the Worldwide Developers Conference (WWDC) held from June 10 to 14.

Researcher Kangho Park stated, "Starting with the iPhone 16, Apple is transitioning into an AI platform/service company," and added, "We believe that 2025 will bring new growth opportunities as an AI platform."

Researcher Park also said, "Apple is the only company that simultaneously owns an independent operating system (iOS) and hardware (various devices)," adding, "This allows Apple to provide differentiated services in the AI platform era and is evaluated as having a competitive advantage compared to competitors."

He continued, "We expect Apple to strengthen its strategy to increase iPhone 16 sales and expand the proportion of premium models through AI service provision," and "We anticipate additional earnings upgrades for LG Innotek, BH, and Jahwa Electronics."

He further explained, "LG Innotek is expected to see an increase in the average supply price due to the higher pixel count of the ultra-wide camera in the iPhone 16 and the additional application of optical image stabilization (OIS) components," forecasting, "Operating profit in the second half of 2024 is expected to increase by 23.8% year-on-year."

He added, "BH is expected to increase its market share in Apple's R/F PCB sector and supply HDI (rigid PCB) for the iPad Pro model, leading to a 25.2% year-on-year increase in operating profit in the second half of 2024," and "Jahwa Electronics is projected to supply OIS to two models of the iPhone 16 in 2024, achieving a record-high sales of 907.5 billion KRW and a turnaround to operating profit in 2024."