Stock market on button for spin-off action

Top News | Dominique Nguy 14 Sep 2017

The launch of Apple's new iPhones sent smartphone-related stocks on a modest rise yesterday.

And market analysts said there was not much surprising about the models but the application of the latest facial recognition technology could go beyond smartphones in the future.

Shares of Apple supplier AAC Technologies rose 1.3 percent and lens manufacturer Sunny Optical Technology 4.4 percent.

Going the other way were smartphone casings producer Tongda Group, which dropped 1.3 percent, and Q Technology, down 4.9 percent.

"There weren't a lot of surprises for the market from the launch," said First Shanghai Securities chief strategist Linus Yip Sheung-chi.

"With speculation on smartphone- related stocks coming to an end after the launch, investors will go back to assessing the fundamentals that will be beneficial to leading technology companies."

Alex Wong Kwok-ying, director of Ample Finance Group, described the effect of the launch as "mild" but added: "The application of the new facial recognition feature of iPhone X could go well beyond smartphones."

Yip agreed the application of optical technology could be expanded. That could include a broad acceptance of the idea of opening doors to a home or to a car using facial recognition technology.

Also offering a smartphone reading was investment bank Jefferies, which noted in a report that the market's attention was mostly on the new iPhone's 3D sensing and augmented-reality technologies.

It also said that upgrades in hardware had met market expectations, and these will set higher technical benchmarks for component producers and suppliers.

Jefferies recommended buy ratings for Sunny Optical Technology, ASM Pacific and Semiconductor Manufacturing International as these companies are major 3D-sensing component suppliers.

Morgan Stanley said the augmented reality technology has the potential to become a next big thing and could boost Apple's services revenue.

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