:max_bytes(150000):strip_icc()/GettyImages-2170418002-e21de60d15cc4e7eb0e45d55cc0c2bd9.jpg "Here’s Why Analysts Think iPhone 16 Sales Could Start Strong")
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Key Takeaways
- Apple’s iPhone 16 sales could get a boost from the promotions offered by leading cellular carriers like Verizon and AT&T, analysts said.
- Bank of America analysts said Wednesday that the latest trade-in deals are slightly more generous than last year’s, with iPhone 16 models launching at the same price as iPhone 15 models last year.
- Jefferies analysts said trade-in offers are expected to be even more aggressive outside the U.S. as Apple tries to step up competition with Chinese rival Huawei.
Sales of Apple’s (AAPL) new iPhone could benefit from trade-in and promotional offers from cellular carrier giants like Verizon (VZ), AT&T (T), and T-Mobile (TMUS), analysts said.
J.P. Morgan analysts said following Monday’s launch event that “more attractive trade-in prices are needed” for iPhone 16 sales to see year-over-year (YOY) volume growth. Jefferies analysts said Apple’s aggressive trade-in offers represent the company’s “most effective strategy” to drive sales growth compared to last year’s launch.
Apple may need “even more aggressive” offers in China to drive sales amid rising competition from domestic brands like Huawei, Jefferies analysts said.
Trade-in Offers Provide Similar Price Across Carriers
The trade-in offers vary slightly across carriers, Bank of America found, incorporating factors like the quality of the phone being traded in and the tier of phone plan customers need to purchase to get the offer.
On average, though, the carriers have roughly the same cost if a customer is trading in a phone that qualifies for the maximum value, with the iPhone 16 plus AppleCare set to cost about $255, and the iPhone 16 Pro Max set to cost $539. That compares to their launch prices of $799 and $1,199, respectively.
Morgan Stanley analysts said that they believe trade-ins have “never been the driving factor” for many consumers upgrading to a new iPhone, but are an important piece of making the newest smartphones affordable to a wider group of customers.