Bank of America says iPhone demand remains strong, despite reports of possible production cuts around the world.
Bank of America analysts say demand for the iPhone is still strong despite a recent report claiming the company has cut production of the iPhone 13 and iPhone SE 3.
“While these stories may lead some investors to believe there is a risk to demand, we believe demand for the iPhone remains strong based on our analysis of device repossession prices. »
After launching the iPhone SE in March, Apple lowered the iPhone 12 trade-in price, indirectly confirming strong demand as the company doesn’t need to shell out more money to get people to trade in the iPhone SE. old phone versus a new model.
Analysts also cite a January survey that found 25% of respondents still own an iPhone 8 or earlier, indicating that Apple has a very strong user base in the process of switching iPhones.
“We see it as an opportunity to lead a very broad replacement cycle. Apple may have many users willing to buy a newer iPhone, which could explain why the company is still accepting iPhone 6 and 6 Plus models for trade-in in China, but not in the US and UK. »
Apparently, Apple’s situation is therefore better than expected.