HSBC Research Publication ReportslingobingoGPT-4o promotes artificial smartphonesslingobingoWith the popularity of voice assistants, voice assistants are likely to become a "killer application" among them. NPU, DRAM, sensors, batteries, chargers, RF, cooling and operating systems are key areas for specification upgrades. Industry choice Lixun Precision (002475slingobingo.SZ), and optimistic about Xiaomi (01810slingobingo.HK), AAC (02018.HK) and Anke Innovation (300866.SZ).
The report mentioned that since Apple (AAPL.US) is likely to integrate ChatGPT into the upcoming iOS 18, the upcoming iPhone model will bring a better user experience, which will trigger future replacement needs, which will create synergy.
The bank believes Lixun Precision is a good representative of the recovery of the iPhone supply chain, benefiting from its continued growing share of iPhone production and a broader supply of parts. The bank believes that the upcoming WWDC 2024 conference in June will be a catalyst and is optimistic about Xiaomi, which is at the forefront of specification upgrades, because with its HyperOS support, Xiaomi is ready for the upcoming potential artificial smartphone replacement demand.
The bank is also bullish on AAC, which is one of the main beneficiaries of rising demand for microphones because of higher requirements for complex voice assistants in the future. At the same time, we are optimistic about Anke Innovation, a leading Apple-certified charger supplier, because artificial smartphones may cause more users to worry about low battery power, and the size of smartphone batteries is unlikely to increase further.