- Some reports suggested Apple Inc (NASDAQ:AAPL) looked to slash iPhone and AirPods production over the Ukraine war and inflation, but analysts called it a rumor.
- However, BofA defended the tech giant, noting demand is "strong," citing lower trade-in prices for old iPhones.
- Apple lowered trade-in values for some iPhone models after the $429 iPhone SE launch in early March.
- Also Read: Apple iPhones Led Smartphone Sales As 5G Handsets Formed Over 50% Of Sales, Falling Chip Prices Are Making 5G Phones More Affordable: WSJ
- The iPhone 12 Pro Max, the newest model available for trade-in, is now worth $650 versus $700 before the launch.
- Analyst Wamsi Mohan has a Buy and a $215 price target on Apple. It implies an upside of 20.1%.
- Apple's trade-in values are less than third parties in the U.S. and U.K., and its recent cut in trade-in prices in both countries and China signified strong demand.
- Apple no longer needs to pay as much to convince people to trade in older iPhones for new models.
- China's old iPhone users were the target audience for the iPhone SE.
- Apple could benefit from increasing the installed base of iPhones, monetizing the same to improve services revenue.
- Separately, Wamsi saw minimal impact from China's shutdowns.
- Price Action: AAPL shares traded lower by 0.67% at $177.78 on the last check Wednesday.
