This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Countdown to iPhone 6 Sends China's 'Apple Concept' Stocks Soaring

NEW YORK (TheStreet) -- Stock investors in China have been betting on a big second half for Apple (AAPL) by snapping up shares in the company's Chinese suppliers and other makers of smartphone parts.

So-called "Apple concept" stocks on the Shenzhen and Shanghai exchanges have risen sharply since last week on expectations of an impending ramp-up for production of a new iPhone 6, an updated iPad and the iWatch.

The market has also gotten behind companies that make or supply parts for electronic gadget screens including so-called "sapphire glass" screens, such as the Shenzhen-listed companies Roshow Technologies, Jin Fu New Materials and Anjie Technology.

If Apple switches to sapphire glass for screens, as many tech sector observers expect, other smartphone makers with factories in China are likely to follow suit, according to a GF Securities report. This "copycat effect" could push demand for sapphire glass screens to three times what Apple will need for new iPhones, the report said.

Over the past week, Roshow's price has climbed 14%, closing Wednesday at 25.95 yuan a share, while Jin Fu jumped 20% to 12.72 yuan. Shares in Anjie, a contractor for Apple supplier Foxconn (FXCNF), closed at 37.19 yuan after climbing 17% since last week.

>>Read more: Tim Cook's Biggest Failure at Apple

Roshow recently announced a joint venture with privately held Apple supplier Biel Crystal -- a company accused of labor abuse leading to suicides last fall -- to make sapphire glass screens at a new factory. The companies have reportedly invested 500 million yuan and plan to launch production in August.

Other Apple concept stocks attracting investors include Shanghai-listed USI Electronics, whose shares rose 13% since last week to close Wednesday at 26.47 yuan, and Shenzhen-listed Tongfeng Guoxin Electronics, which saw its stock climb 5% to 40.90 yuan.

The current build-up to factory production of new Apple products is being closely followed by the business press in China, where supplying and assembling the company's wares employ millions of people in cities nationwide.

>>Read more: Will China's Telecoms Dodge a Major Tax Bullet?

>>Read more: King Digital's Tiny Troubles

The state newspaper China Securities Journal on Wednesday said that as parts-stocking for the iPhone 6 and other new products begins, "various links in the entire Apple industry chain will get a significant boost (and) listed companies will see significant improvements in profitability."

The paper also predicted that "production of the new components will start in May, while final processing and assembly (of new Apple products) will start by the end of June."

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs