Apple (NASDAQ: AAPL) can deliver upside to low iPhone 16 sales expectations: Evercore ISI

Evercore ISI maintained its positive outlook on Apple (NASDAQ: AAPL) in a note Thursday, suggesting the tech giant can surpass the market’s low expectations for iPhone 16 sales.

The firm said a recent survey it conducted revealed robust demand for Apple’s latest iPhones, particularly in the U.S., bolstering confidence in the company’s ability to deliver upside in what is seen as a critical product cycle.

Evercore surveyed around 3,500 individuals regarding their iPhone purchasing intentions, and the results were stronger than anticipated.

“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,” Evercore stated.

The survey found that 63% of respondents plan to upgrade their iPhones this year, marking the highest upgrade rate in five years of tracking this data.

One key driver for the high upgrade rate was said to be the appeal 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.” This marks a shift from previous years, where better battery life typically ranked higher as a reason for upgrading.

Additionally, the survey pointed to a modest increase in ASP, driven by more users opting for the higher-end Pro Max model.

Evercore now expects an average price of $1,000 per iPhone, up from