Evercore ISI Optimistic on Apple iPhone 16 Sales

Evercore ISI reaffirmed its positive outlook on Apple (NASDAQ:AAPL) in a note released Thursday, stating that the tech giant is likely to exceed the market’s low expectations for iPhone 16 sales.

The firm’s recent survey indicated strong demand for Apple’s latest iPhones, especially in the U.S., enhancing confidence in the company’s prospects during this pivotal product cycle.

A total of 3,500 individuals were surveyed about their iPhone purchasing intentions, yielding results that surpassed expectations. Evercore noted, “We are surprised by the strength of the survey results, which point to high demand for the new iPhones as well as solid ASP (average selling price) growth.”

The findings revealed that 63% of respondents plan to upgrade their iPhones this year, the highest upgrade rate recorded in five years. Significant factors contributing to this high rate include the attraction of Apple’s new AI features.

According to Evercore, “Desire for the latest Apple Intelligence features was listed as a main reason for upgrading by 42% of respondents,” contrasting with prior years when better battery life was a more significant motivator.

Furthermore, the survey indicated a moderate increase in ASP, as more consumers are choosing the higher-end Pro Max model. Evercore now anticipates an average price of $1,000 per iPhone, an increase from previous estimates.