--- title: "GoerTek: Apple supply chain has volume but little pricing power — where is the growth engine?" type: "News" locale: "en" url: "https://longbridge.com/en/news/296491089.md" datetime: "2026-08-20T12:30:07.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296491089.md) - [en](https://longbridge.com/en/news/296491089.md) - [zh-HK](https://longbridge.com/zh-HK/news/296491089.md) --- # GoerTek: Apple supply chain has volume but little pricing power — where is the growth engine? GoerTek Co., Ltd. released its Q2 2026 results and 2026 interim report (through Jun 2026) after the A-share close on Aug 20, 2026 (Beijing time). Key takeaways are as follows: **1) Overall results**: **Q2 2026 revenue was RMB 21.4bn (+0.7% YoY), slightly below market expectations (RMB 21.7bn).** H1 growth was largely driven by Q1, while Q2 was weighed by tight supply of memory and other components, dampening demand across smartphones and other consumer electronics. **GPM was 15.2% this quarter, improving both YoY and QoQ**, mainly as Vietnam labor disruption cleared and share from key customers recovered. **In H2 2025, GPM for intelligent acoustic assemblies once fell to 0.4%, primarily due to US‑China tariffs.** The company shifted capacity to Vietnam, and 'high-priced hiring' amid industry peers also building plants pushed up labor costs, compressing margins over that period. **2) Intelligent hardware**: **H1 2026 revenue was RMB 19.9bn, down 2.2% YoY.** Shipments of legacy lines (PS5 late-cycle, Quest softness) declined, and AI glasses have yet to ramp. **3) Traditional hardware & components** **(i) Intelligent acoustic assemblies H1 2026 revenue was RMB 11.3bn (+36% YoY)**. Growth was driven by last year's low base and product cycle effects. AirPods 4 (two models) launched in Sep 2024, and AirPods Pro 3 launched in Sep 2025. **H1 2025 followed the initial AirPods 4 ramp and AirPods Pro 3 had not yet entered production**. H1 2026 is the first full production year for AirPods Pro 3, reflecting a normal mass-production cadence. **Market focus: intelligent acoustic assemblies GPM was 9.7% in H1 2026**, down 20bps YoY. **With revenue up 36% but margin down again, it suggests**$Goertek.SZ **remains under Apple’s pricing pressure**. **(ii) Precision components H1 2026 revenue was RMB 7.76bn (+2% YoY)**. With subsidy tightening and other factors, revenue growth in precision components slowed sharply (from ~20% to ~2%). **4) Opex & operations**: Total core operating expenses were RMB 1.94bn this quarter, with a **core expense ratio of 9%, broadly stable YoY**. Inventory stood at RMB 18.6bn, up RMB 5.1bn QoQ. **The inventory-to-revenue ratio was 0.87**, with inventory levels edging higher mainly due to increased reserves of raw materials and finished goods. **Dolphin view: Vietnam ‘pit’ filled, growth gap remains** **GoerTek’s quarterly print was fairly ordinary.** Revenue growth slowed amid a soft consumer electronics cycle. Margin improvement was driven by easing hiring issues in Vietnam and recovering share from major customers. In detail: **a) Intelligent hardware: another YoY decline, still in a transition phase between old and new lines.** Within intelligent hardware, the company derives the most revenue from game consoles and VR/MR, where it is a key supplier to PS5 and Meta Quest. **Meta Quest remains weak; PS5 is late-cycle with PS6 expected in 2027; AI glasses have not achieved scale to lift growth.** **b) Intelligent acoustic assemblies: a strong rebound.** H1 intelligent acoustic assemblies grew 36%, primarily driven by the **AirPods product cycle**. It is **the first full year for AirPods Pro 3** (AirPods Pro 2 launched in 2022). **Considering the slight GPM decline in acoustic assemblies and the slowdown to 2% in precision components, Dolphin believes GoerTek has merely ‘returned to the table’ in AirPods, without grabbing substantial share.** The improvement is mainly cycle-driven by the client. **c) Precision components: growth decelerated sharply**. Memory price hikes and other raw-material inflation squeezed end-demand for electronics, leading to a sharp slowdown in this business. With a current market cap of RMB 78.2bn, GoerTek trades at roughly ~15x 2026E core NP (assuming revenue +10%, GPM 14%, and a 7.5% tax rate). Versus its historical range (15x–40x PE), the valuation is near the lower end, largely due to a lack of clear catalysts. **Across the company’s three core businesses:** **① Memory prices keep rising,** directly impacting end-demand and indirectly slowing precision components growth. **② MR/VR is no longer mainstream, and consoles are mid-transition; hopes rest on AI glasses, but no breakout product has emerged. ③ Intelligent acoustic assemblies show ‘revenue up, profit not’,** mainly cycle-driven by AirPods, with weak bargaining power and GPM down YoY. **This interim report shows the Vietnam labor-cost issue encountered last year has been digested, with GPM recovering.** But growth has not been fixed: precision components and intelligent hardware remain sluggish, and acoustic assemblies still show ‘revenue up, profit not’. These are key reasons why valuation stays depressed. **While the issues have been ‘priced in’, there is still little confidence in a bottoming rebound, especially with uncontrollable memory inflation and client product cycles.** The report also suggests continued pricing pressure from Apple in AirPods, with bargaining power still weak. Before the industry/product cycle turns, GoerTek’s share price may continue to range at low levels. Below are GoerTek’s results and related charts: Dolphin Research’s past coverage of GoerTek: Apr 23, 2026 earnings review: '[GoerTek: Past Vietnam hiring ‘pit’, margin recovery, but growth still ‘gapped’?](https://longportapp.cn/en/topics/40142811)' Oct 24, 2025 earnings review: '[GoerTek: Steady pre‑stocking, Meta flat — when will VR/AR ‘go big’?](https://longportapp.cn/en/topics/35597406)' Aug 21, 2025 earnings review: '[GoerTek: Margin recovery, steady cadence — Meta new launches ‘assist’ again?](https://longportapp.cn/en/topics/33210973)' Apr 21, 2025 earnings review: '[VR ‘fizzles’, tariffs ‘backstab’ — what is GoerTek’s way out?](https://longportapp.cn/en/topics/29040782)' Risk disclosure & disclaimer: [Dolphin disclaimer & general disclosure](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [002241.CN](https://longbridge.com/en/quote/002241.CN.md) ## Related News & Research - [China’s Goertek invests $20M more in Vietnam factory for camera production](https://longbridge.com/en/news/283628060.md) - [15:56 ETRocket Alumni Solutions Launches Rocket Signage: A High-Impact, Affordable Digital Signage Solution for Schools](https://longbridge.com/en/news/296530047.md) - [Vilniaus Baldai appoints Grant Thornton Baltic as auditor for 2026-27 financial statements](https://longbridge.com/en/news/296367543.md) - [Nurminen Logistics unit North Rail to cut 25 jobs after change talks](https://longbridge.com/en/news/296198772.md) - [LA MANCHA INVESTMENTS S. 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