Apple’s lowering of trade-in prices for Macs, iPhones, iPads, and Apple Watches earlier this month, a move that implies “strong demand,” according to Bank of America’s investment arm.
Analyst Wamsi Mohan, who has a buy rating on Apple (AAPL) shares and a $200 price target, noted that this is the second time this year the tech giant has cut the trade-in value of its devices…
“In our opinion, the successive reduction in iPhone trade-in prices and lower Apple trade in prices vs 3rd parties indicates that demand for the iPhone remains healthy,” Mohan wrote in a note to clients, adding that the company has “multiple tailwinds” for both hardware and services.
In addition, Mohan pointed to a global survey conducted in April by Bank of America that showed more than 24% of respondents still had an iPhone 8 or older, which is seen as an opportunity to drive a replacement cycle. The analyst also noted that iPhone 6 and iPhone 6 Plus ownership in China is “relatively higher” than in the U.S. and U.K., with Apple still accepting those devices for trade-in in that country and not in the U.S. and U.K.
MacDailyNews Take: Apple is primed to exceed expectations.
Apple’s third fiscal quarter results are set to be released after market close on Thursday, July 28, 2022.
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