Goldman Sachs GC Tech: iPhone 17e, M4 iPad Air Launched; Read Across to Supply Chain and Stock Ideas
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Goldman Sachs analyzes Apple's newly launched iPhone 17e and M4 iPad Air, assessing the implications for the Greater China technology supply chain. The report suggests that these specification upgrades will stimulate replacement demand and drive higher shipment volumes, benefiting key component suppliers.
The iPhone 17e features several notable enhancements, including MagSafe wireless charging up to 15W, an upgraded Ceramic Shield front, and the new A19 processor with a neural engine. Apple has eliminated the 128GB option; the 256GB model now starts at USD 599, down from USD 699 previously. Camera specifications remain unchanged at 48MP rear and 12MP front.
The M4 iPad Air upgrades to WiFi 7 and Bluetooth 6 connectivity, alongside the new M4 processor. Camera hardware remains stable. Apple's strong bargaining power is expected to shield the supply chain from rising memory cost pressures during the current industry downcycle, potentially allowing the company to capture additional market share.
Goldman Sachs maintains Buy ratings across a broad spectrum of Apple suppliers. Key recommendations include Hon Hai for iPhone assembly, Foxconn Industrial Internet for metal mid-frames, Largan for lenses, AAC Technologies for acoustics and haptics, TSMC for foundry services, ASE Technology for packaging, Zhen Ding for PCBs, and Elite Material for copper-clad laminates. TSMC and Hon Hai are specifically highlighted on the firm's Asia-Pacific Conviction List.
Global smartphone shipments are projected to reach 1.19 billion units in 2026 and 1.21 billion in 2027, representing year-over-year declines of 6% and 2%, respectively.