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Financial institution of America analysts stated Wednesday that iPhone demand remains to be robust regardless of a current report that stated Apple has minimize manufacturing of its iPhone 13 and new iPhone SE.

Analysts at Financial institution of America stated in a notice, “Whereas these articles could lead some traders to suppose that there’s a threat to demand, we imagine our evaluation of the iPhone trade-in costs will not be a very good possibility.” The demand for iPhones on a base stays robust.”

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Financial institution of America stated Apple decreased trade-in costs for some iPhone fashions following the launch of the $429 iPhone SE in early March. The notice says the most recent mannequin obtainable for trade-in is the iPhone 12 Professional Max now priced at $650, up from $700 earlier than launch. Analysts argue that this exhibits demand remains to be robust as a result of Apple does not have to pay as a lot to persuade individuals to commerce in older iPhones for brand new fashions.

An Apple spokesperson was not instantly obtainable to touch upon the trade-in worth adjustments.

“This compares to the 12 months 2019 when Apple was providing increased trade-in costs versus third-party upgrades,” analysts stated. “Individually, China has imposed one other spherical of lockdown in Shanghai; nevertheless, as we reported earlier firms have realized to fabricate via COVID and Apple/Foxconn don’t have any want to maneuver manufacturing to different areas. There may be potential and up to now, we don’t anticipate a bodily influence from these shutdowns.”

In one other signal of energy for Apple’s new iPhone SE, Financial institution of America analysts stated a world survey performed in January confirmed 25% of respondents nonetheless owned an iPhone 8 or earlier. Older iPhone customers are the target market of the iPhone SE.

“We see this as a chance to drive a alternative cycle,” Financial institution of America stated. “Apple could also be focusing on these customers to improve to a more recent iPhone, which can be one cause why Apple nonetheless accepts the iPhone 6 and 6 Plus fashions for trade-in in China, however within the US and UK. No.”

Financial institution of America stated Apple may benefit from rising its put in base of iPhones, which might be monetized to enhance companies income. Apple’s companies enterprise grew 24% year-over-year to $19.52 billion throughout fiscal Q1.

Apple reportedly cuts production of new iPhone SE by 20%

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