Chip Somodevilla
Apple (NASDAQ:AAPL) really, really wants you to upgrade your device.
This week, the tech giant (AAPL) boosted its trade-in prices for old devices — including Androids — amid slowing revenue and a newly launched series of iPhones that has analysts doubtful over just how well they might be selling.
The estimated trade-in values for certain devices have increased as follows:
- Apple Watch Ultra: Up to $425 from $380
- Apple Watch Series 7: Up to $160 from $155
- iPad Pro: Up to $580 from $510
- iPad: Up to $260 from $170
- Samsung Galaxy S22 Ultra 5G: Up to $340 from $325
- Samsung Galaxy S22 5G: Up to $190 from $180
- Google Pixel 6 Pro: Up to $140 from $125
- Google Pixel 6a: Up to $100 from $80
The higher trade-in prices come after Apple (AAPL) earlier this month reported its first fiscal year sales drop since 2019.
For the quarter ending September 30, Apple (AAPL) said revenue fell 1% year-over-year to $89.5B.
Revenue from the iPhone and Services rose during the quarter, but other areas fell significantly. Net sales by category:
- iPhone revenue: $43.8B, up 2.7% Y/Y
- Mac revenue: $7.61B, down 33.9% Y/Y
- iPad revenue: $6.44B down 10.2% Y/Y
- Wearables, home and accessories: $9.32B, down 3.4% Y/Y
- Service revenue: $22.31B, up 16.3% Y/Y
On its earnings call on November 2, the tech giant implied that sales growth would decline for a fifth straight quarter. Chief Financial Officer Luca Maestri said iPhone revenue will “grow year-over-year on an absolute basis,” but that total company revenue is likely to be “similar to last year,” below expectations for around 5% growth.
Meanwhile, demand for newly-released iPhone 15 models is showing signs of weakness, JP Morgan, Bank of America and UBS have said. The company also released updated Macs on October 30, promoting the speed of the upgraded computers. How well those are received remains to be seen.
Shares of Apple (AAPL) are up more than 45% year-to-date.
