Bank of America: iPhone demand remains high

Bank of America says iPhone demand remains strong, despite reports of possible production cuts around the world.

iphone 13 pro green

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.

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