Apple concept stocks led market declines today. As of publication, FIT HON TENG (06088) dropped 9.33% to HK$5.83; COWELL (01415) fell 5.7% to HK$34.42; Q TECH (01478) declined 4.91% to HK$15.1; and BYD ELECTRONIC (00285) decreased 4.59% to HK$39.52.

On the news front, the U.S. recently announced plans to impose 100% tariffs on Chinese goods. China Merchants Securities believes this tariff threat should be viewed as a bargaining chip rather than an end goal, with the probability of 100% tariffs being implemented remaining low. Huafu Securities stated that the impact of tariffs on Apple supply chain equipment companies should not be overestimated, noting that Apple maintains extremely strict requirements for suppliers and domestic Apple supply chain companies possess irreplaceable advantages.

Notably, Counterpoint previously released a report indicating that China's smartphone market sales declined 2% year-over-year during the first eight weeks of the third quarter of 2025. This decline was attributed to intensified competition in the mid-to-high-end market due to promotional activities and national subsidy policies, along with consumers' increasing preference for mid-to-high-end products. The institution expects China's smartphone market to experience a slight decline in the third quarter of 2025, while full-year performance is projected to remain roughly flat.