Apple Ignores Press Reports, and iPhone Demand Stays Strong – BofA

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According to a recent report from Nikkei, Apple plans to produce 20% fewer iPhone SEs next quarter due to lower demand caused by the conflict in Ukraine. In addition, the report stated that Apple’s iPhone 13 and AirPods orders had been slashed.

Following his examination of iPhone trade-in prices, Mohan reaffirmed the high demand for iPhones. Mohan said.

In the United States and the United Kingdom, Apple is offering trade-in values that are lower than those offered by third parties. Additionally, in the United States, the United Kingdom, and China, Apple recently reduced the trade-in prices for the majority of its models. In our opinion, low third-party Apple trade-in prices and lower overall iPhone trade-in prices indicate strong demand. It’s a stark contrast to the high trade-in values Apple offered in 2019 to encourage customers to upgrade, Mohan wrote in a client note.

Also read: Apple now makes it harder for people to get lost or stolen iPhones repaired

Furthermore, according to a recent survey by BofA, more than a quarter of people worldwide still use old iPhone models (iPhone 8 or earlier).

We see this as a chance to kick-start a new product cycle. Apple’s iPhone 6 and iPhone 6 Plus are more popular in China than in the United States and the United Kingdom. If Apple wants to upgrade these customers, they may accept trade-ins for iPhone 6 and iPhone 6 Plus models in China, but not in the United States or the United Kingdom.

According to the analyst, both Apple and Foxconn have the capability of moving production to other, less-affected areas as a result of the latest round of lockdowns in Shanghai.

Mohan came to the conclusion that these shutdowns would have no significant effect.

Also read: Man incarcerated for finding girlfriend’s location using Apple Watch

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