Bank of America says demand for the iPhone is still strong despite reports of Apple cut back production of some models.
Bank of America analysts said on Wednesday that iPhone demand is still strong despite a recent report that said Apple cut production of its iPhone 13 and new iPhone SE.
“While these articles might lead some investors to think there is risk to demand, we believe demand for iPhones remains strong based on our analysis of iPhone trade-in prices,” the Bank of America analysts said in a note.
Bank of America said Apple lowered trade-in values for some iPhone models after the launch of the $429 iPhone SE in early March. An iPhone 12 Pro Max, the newest model available for trade-in, is now worth $650 as opposed to $700 before the launch, the note said. The analysts argue this shows demand is still strong since Apple doesn’t need to pay as much to convince people to trade in older iPhones for new models.
In another sign of strength for Apple’s new iPhone SE, Bank of America analysts said that a global survey it conducted in January showed 25% of respondents still owned an iPhone 8 or earlier. Old iPhone users are the target audience for the iPhone SE.
MacDailyNews Take: We are in the midst of a multi-year Mother of All iPhone Upgrade cycle.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!