iPhone demand is 'strong' BofA says, citing lower trade-in prices
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A recent media report suggested that Apple (NASDAQ:AAPL) was cutting iPhone and AirPods production over the Ukraine war and inflation, but Bank of America defended the tech giant, noting demand is "strong," citing lower trade-in prices for old iPhones.
Analyst Wamsi Mohan, who has a buy rating and a $215 price target on Apple, noted that Apple is offering trade-in values that are less than third parties in the U.S. and U.K. and it recently cut trade-in prices in both countries, as well as China. 
"In our opinion, lower Apple trade-in prices vs 3rd parties and the reduction in overall iPhone trade-in prices signifies strong demand," Mohan wrote in a note to clients.
Apple (AAPL) shares were lower in late trading on Wednesday, falling slightly less than 1% to $177.51, after rising for 11 consecutive trading sessions.
In addition, any concerns about China imposing COVID-related shutdowns on Shanghai are overblown, as Mohan noted that "companies have learned to manufacture through COVID and Apple/Foxconn have the ability to relocate production," adding the firm does not "expect a material impact from these shutdowns."
Apple (AAPL) is also likely to benefit from users trading in their iPhones, with Mohan pointing out a recent survey that showed more than 25% of respondents have an iPhone 8 or earlier. 
The tech giant could also benefit from the trade-in programs by increasing its iPhone installed base, further monetizing its Services and keeping customers locked into the Apple ecosystem, while also selling other products.
Apple (AAPL) recently became the first streaming service to win the Oscar for Best Picture for CODA at the 94th Academy Awards, an occasion that Wedbush Securities called a "drop the mic moment."