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.

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), SUNNY OPTICAL (02382.HK), and XIAOMI-W (01810.HK).

Stock | Investment Rating | Target Price
AAC TECH (02018.HK) | High-Conviction Outperform | HKD66.1
Luxshare (002475.SZ) | Outperform | RMB44.1
Samsung Electronics (005930.KS) | Outperform | KRW73,000
SUNNY OPTICAL (02382.HK) | Outperform | HKD88.7
XIAOMI-W (01810.HK) | High-Conviction Outperform | HKD69
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AAStocks Financial News
Web Site: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
XIAOMI (C)	15358	68.05 (-)	0.087	5.0 X
XIAOMI (C)	15359	63.93 (-)	0.099	5.1 X
XIAOMI (C)	14470	61 (-)	0.103	5.4 X
XIAOMI (C)	14839	55.05 (-)	0.102	7.1 X
XIAOMI (P)	14219	46.45 (-)	0.077	3.3 X
XIAOMI (P)	16080	38.53 (-)	0.039	3.6 X
XIAOMI (Bull)	54565	55.1 (55.5)	0.027	21.2 X
XIAOMI (Bull)	69255	53.1 (53.5)	0.049	11.7 X
XIAOMI (Bear)	57008	63.9 (63.5)	0.055	10.4 X
XIAOMI (Bear)	54560	61.2 (60.8)	0.033	17.4 X
AAC (C)	17227	54.04 (-)	0.128	3.0 X
AAC (C)	13937	52.88 (-)	0.059	4.8 X
SUNY (C)	15361	95.93 (-)	0.060	4.5 X
SUNY (C)	13939	89.5 (-)	0.075	4.3 X
SUNY (P)	13656	58.83 (-)	0.069	4.1 X
SUNY (Bull)	55606	64.5 (66.5)	0.122	6.2 X
SUNY (Bull)	61541	58.5 (60.5)	0.185	4.1 X
APPLE (C)	10614	236 (-)	0.078	11.3 X
APPLE (P)	10678	170 (-)	0.089	6.1 X