New | Hong Kong-listed AAC Technologies seen as beneficiary as Apple rolls out new iPhone 7

AAC Technologies, a leading supplier of electronic micro-component systems, is expected to see accelerated growth later this year as client Apple Inc embarks on significant upgrades to its much-anticipated iPhone 7.

Analysts expect Hong Kong-listed AAC’s growth prospects related to Apple would be clearer in the third quarter, when the US technology giant traditionally introduces its latest smartphone model.

Ken Hui, equity analyst at Jefferies, said in a report that AAC has “guided this year to be more back-end loaded than in 2015, suggesting confidence on the dollar content increase and market share for AAC in the iPhone 7.”

Hong Kong-listed AAC is a global supplier of miniature acoustic and non-acoustic components to Apple, Samsung Electronics, LG Electronics and major Chinese smartphone brands, including Huawei Technologies, Xiaomi, Lenovo Group, ZTE, Oppo, Coolpad and Meizu.

AAC, based in Shenzhen, produces a range of micro-component systems include receivers, speakers and microphones, which are used on the iPhone, iPad and Apple Watch.

It also has non-acoustic parts, such as radio frequency (RF) mechanical products that combine antennas with metal frame solutions as well as proprietary haptics vibrators, used in those same three high-margin products.

Haptics refers to the technology used on mobile phones and smartwatches that enable a user to feel a tactile sensation when interacting with an application. Video game controllers have used this technology for years, but its adoption for so-called smart wearable devices could potentially make haptics part of many everyday applications.