Apple Inc (NASDAQ:AAPL) saw a sharp increase in trade-in values for its MacBook Pro line during the month of September, according to a recent analyst comment from Bank of America.
The surge in trade-in values ranged from $200 to $350 across the US, the UK, and China. The most significant gain was observed in the UK, followed by China, while the US saw a comparatively modest increase of $200.
But the increase in MacBook Pro trade-in values, particularly in the UK, raises concerns regarding the demand for Mac products: these trade-in prices could indicate sluggish demand for Mac devices, the BofA analysts noted.
Additionally, the trade-in prices for other Mac models remained relatively flat during the month, with trade-in values for Mac Studio declining in both the US and the UK.
On the other hand, the trade-in values for Apple Watch models remained steady, with no reported increases in trade-in values for any of the models tracked in the US, UK, or China. The only decline noted was for the Apple Watch Series 7 in the US and declines for Series 6 and Series 7 in the UK.
Chinese trade-in prices for the Apple Watch declined across all models except for the Apple Watch SE.
Adding to the mix is the revelation that trade-in value data trended lower ahead of a new iPhone launch. The data indicates that iPhone 14 trade-in values have been flat since the launch of the iPhone 15.
As expected, older models experienced declines in trade-in values. Notably, Chinese and Indian iPhone trade-in prices remained relatively steady leading up to the launch, despite already being at elevated levels during the summer months.
The stability of trade-in values for Apple Watch models suggests sustained interest and demand in the wearables segment. However, the variations in trade-in values for Mac and iPhone models underscore the importance of closely monitoring trade-in prices as indicators of demand levels across different geographies.
BofA has a 'Neutral' rating on Apple stock, which was down 2.3% on Tuesday afternoon in New York.