AI TRENDS | Apple iPhone Camera Upgrade Lifts Lens Suppliers, Morgan Stanley Says

Apple's latest iPhone launch, including the first use of a variable-aperture main camera in the iPhone 18 Pro and Pro Max, points to a major hardware upgrade and could benefit related suppliers, according to ETNet. Morgan Stanley said the variable-aperture lens should carry a higher average selling price than traditional lenses and that a new periscope lens is also under development. It expects Luxshare Precision, LianYing Intelligent Manufacturing, AAC Technologies and other related stocks to be the main beneficiaries, and reiterated overweight ratings. The bank raised AAC Technologies' target price to HK$50 from HK$42 and lifted Luxshare Precision's H-share target price to HK$82 from HK$80. It kept Sunny Optical on an equal-weight rating but raised its target price 20% to HK$75 from HK$62. Goldman Sachs also said Sunny Optical's handset camera modules are moving upmarket, supporting revenue growth and gross margin expansion. The firm sees long-term potential for Sunny Optical in AI edge devices, AI/AR glasses and sports/360-degree cameras, and kept a neutral rating while raising its target price to HK$83.3 from HK$82.3. It lifted its 2026 and 2027 net profit forecasts by 4% and 2%, respectively, and raised its 2026 and 2027 revenue forecasts by 4% and 1% on higher contributions from XR, automotive and optical instrument products.