BofA: Apple Trade-In Payouts Don’t Need to Be High

13 JULY 2022 - An interesting note from BofA analyst Wamsi Mohan. Apple 3.0 ran some of what he wrote, addressing Apple’s recent lowering of maximum trade-in values for older hardware. I told you last week that the Cupertino-company had reduced the high-end of what it’ll pay when trading-in your old Mac, iPhone, or iPad. According to Mr. Mohan, that was a change Apple made in China, the UK, and the US.

Basically, his thinking seems to be that the lower trade-in values indicate continued strong demand for Apple hardware - at least where iPhone is concerned. Makes sense - why incentivize upgrades when incentives don’t seem to be required?

Mr. Mohan has a “Buy” rating on Apple shares. His price target on the shares is $200.