According to a CLSA report, sales in the smartphone market in 2Q25 were promising, with shipments increasing by 1% YoY despite ongoing macroeconomic challenges and tariff fluctuations.

Specifically, iPhone shipments in 2Q25 grew by 1.5% YoY to 46.4 million units, with strong double-digit growth in emerging markets offsetting a 1% decline in the Chinese market.

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CLSA believed that tariff uncertainties had largely been reflected in some stock prices, and that the valuation of Apple (AAPL.US)      's supply chain appeared attractive.

Within the smartphone supply chain, the broker preferred AAC TECH (02018.HK)  +0.200 (+0.481%)    Short selling $8.93M; Ratio 7.626%   , SUNNY OPTICAL (02382.HK)  +0.950 (+1.255%)    Short selling $34.20M; Ratio 18.653%   , and XIAOMI-W (01810.HK)  -1.050 (-1.832%)    Short selling $576.90M; Ratio 10.201%   .

Stock | Investment Rating | Target Price
AAC TECH (02018.HK)  +0.200 (+0.481%)    Short selling $8.93M; Ratio 7.626%   | High-Conviction Outperform | HKD66.1
Luxshare (002475.SZ)  +2.350 (+6.343%)   | Outperform | RMB44.1
Samsung Electronics (005930.KS) | Outperform | KRW73,000
SUNNY OPTICAL (02382.HK)  +0.950 (+1.255%)    Short selling $34.20M; Ratio 18.653%   | Outperform | HKD88.7
XIAOMI-W (01810.HK)  -1.050 (-1.832%)    Short selling $576.90M; Ratio 10.201%   | High-Conviction Outperform | HKD69
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