Apple Could Surpass Low iPhone 16 Sales Expectations: Evercore ISI

Evercore ISI has upheld its optimistic view on Apple, indicating that the company could exceed the market’s low expectations for iPhone 16 sales. The firm conducted a recent survey revealing strong demand for Apple’s latest iPhones, especially in the U.S., which enhances confidence in the company’s performance during this crucial product cycle.

The survey involved about 3,500 participants regarding their buying intentions for iPhones, and the results surpassed initial projections. Evercore expressed surprise at the strong demand indicated by the survey, noting significant growth in the average selling price (ASP).

Notably, 63% of respondents reported plans to upgrade their iPhones this year, marking the highest upgrade rate observed in five years of data tracking. A key factor contributing to this surge in upgrades appears to be the attraction of Apple’s new AI features. Evercore highlighted that 42% of respondents identified the desire for the latest AI capabilities as a primary reason for their upgrade decisions, contrasting with previous years when extended battery life was a more common motivation.

Additionally, the survey revealed a slight rise in ASP, attributed to a growing number of consumers choosing the premium Pro Max model. Evercore now anticipates an average price of around $1,000 per iPhone, reflecting this trend.