Apple was recently reported to be cutting iPhone and AirPods production due to the situation in Ukraine and inflation, but Bank of America claims otherwise, noting very strong demand as well as lower prices for used iPhones.
Analyst Vamsi Mohan, who set a price target for Apple’s stock at $215, said that Apple has lowered the price of used smartphones in the official store. Now it is lower than third-party sellers in the US and UK.
“In our view, Apple’s lower trade-in prices relative to third-party companies and lower overall iPhone prices are indicative of strong demand,” Mohan said in a note to Bank of America customers.
Shares of Apple slipped to $177.51 in late trading on Wednesday after rising for 11 consecutive trading sessions. It is also reported that any fears that China will suspend the work of Shanghai due to COVID are exaggerated. Mohan noted that “companies have learned how to manufacture products during the pandemic, and Apple / Foxconn have the opportunity to reschedule production,” adding that the company “does not expect the material consequences of these restrictions.”
A recent survey showed that more than 25% of respondents have an iPhone 8 or earlier, so many will change their smartphones this year.
Source: ixbt
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