Rumors of Apple’s intention to reduce order volume for the iPhone SE release in the second quarter did not have the support of all industry analysts, while representatives from Bank of America came up with exactly the opposite thesis. According to the company, the company has no problem with the demand for new iPhone models, and low prices for buying used devices can serve as evidence of this.
In 2019, when the company was interested in stimulating demand for a new generation of iPhone, experts explain Bank of AmericaApple’s own offers to buy back used devices were higher than the prices of third-party companies that offer such a service. Now, according to the source, the opposite situation is observed – the manufacturer is ready to buy the same iPhone 12 Pro Max for $ 650 versus $ 700 offered before the announcement of the third generation iPhone SE model. If Apple wanted to stimulate demand for new models, it would buy older ones at higher prices. Now third-party companies are making more profitable offers for those looking to upgrade their smartphones, experts say. This means that Apple copes well with the demand for new products and does not need additional impetus.
A survey conducted in January found that a quarter of Apple smartphone users are satisfied with the iPhone 8 or older. This suggests there is good potential for an upgrade, especially in the context of the release of the $429 iPhone SE model that supports 5G networks. In China, the company usually still offers the owners of their iPhone 6 and iPhone 6 Plus to buy them back. According to Bank of America, the recent lockdowns in China will not significantly affect the ability of Apple contractors to manufacture smartphones in the quantities required. They have been working in a pandemic for more than a year and are able to effectively compensate for its impact in terms of maintaining production volumes.