According to the Zhitong Finance APP, Guosen Securities released a research report stating that Apple Inc. (AAPL.US) announced on its official website that it will invest an additional USD 100 billion in the U.S., bringing the total investment in the U.S. over the next four years to USD 600 billion. Apple's increased investment in the U.S. may have a positive impact on tariff exemptions/partial exemptions for the supply chain. The proportion of steel shell batteries used in iPhones has been continuously increasing in recent years, and leading battery and equipment companies positioned in this area are expected to benefit. It is recommended to pay attention to the core supplier of battery cells in Apple's supply chain, ZHUHAI COSMX (688772.SH).

Guosen Securities' main points are as follows:

Apple announces an additional investment of USD 100 billion in the U.S.

On Wednesday (August 6), local time, Apple Inc. announced on its official website that it will invest an additional USD 100 billion in the U.S., bringing the total investment in the U.S. over the next four years to USD 600 billion. Apple CEO Tim Cook stated that the company will launch the "American Manufacturing Plan" (AMP), aimed at bringing more of Apple's supply chain and advanced manufacturing processes to the U.S. The first batch of partners includes Corning, Coherent, GlobalWafers, Applied Materials, Texas Instruments, Samsung, GlobalFoundries, Amkor, Broadcom, and MP Materials.

With U.S. tariff policies about to be implemented, Apple's increased investment in the U.S. may have a positive impact on tariff exemptions/partial exemptions for the supply chain. As a result, on August 6, local time, Apple's stock price closed up 5.1%, with an after-hours increase of 2.8%.

The proportion of steel shell batteries used in iPhones has been continuously increasing in recent years

Steel shell batteries have characteristics such as high energy density and good heat dissipation. In recent years, companies represented by Apple have been accelerating the application of steel shell battery solutions in mobile phone products. The 2024 iPhone 16 series is expected to have one model equipped with a steel shell battery, and the iPhone 17 series, set to be released in September 2025, is expected to have two models equipped with steel shell batteries. Additionally, the number of models with steel shell batteries is expected to continue to increase in the upcoming foldable phone and the 18 series models to be released in 2026.

In the context of increased production of steel shell batteries, leading battery and equipment companies are expected to benefit

For battery companies, the price of a single steel shell mobile phone battery cell is expected to reach USD 9-10, which is over 50% higher than the price of soft-pack battery cells, and the gross profit margin is expected to remain relatively stable, significantly enhancing the profitability of a single battery for battery companies. For equipment companies, the need to establish new production lines for steel shell batteries will lead to a significant increase in orders, and the profitability of consumer battery equipment is good with a relatively quick revenue collection cycle, which is expected to have a positive impact on the performance of equipment companies. It is recommended to pay attention to the core supplier of battery cells in Apple's supply chain, ZHUHAI COSMX.

Risk Warning

Apple's smartphone sales may fall short of expectations; the level of tariff exemptions for Apple's supply chain may be less than expected