Bank of America: Consumer tech spending following iPhone 7 intro weak
As everyone remains focused on reporting on what happened with the third quarter, — and with a doozy of earnings reports coming up in two weeks — Bank of America has published its debit and credit card spending numbers for the season that was and found that tech spending has gone flaccid when it came to the iPhone 7.
In the run-up to a major Apple product launch, there has usually been a ramp-up in spending on consumer tech products. This time around, though, instead of commanding a 7 or 10 or even 15 percent net gain on sector spending as the iPhone 6s, the Apple Watch, the iPad Pro and the iPhone 6 have, the iPhone 7 has barely registered more than a 1 percent net change. The total impact? About a 1 percent rise in spending, month-over-month.
“[We] did not see a spike in electronic store sales akin to prior releases of Apple devices,” the note said as obtained by 9to5Mac. “It may be a reflection of the iPhone 7 or perhaps that the trend in electronic sales ex-iPhone is sluggish.”
We aren’t sure what impact the Galaxy Note 7 recall had on tech spending in September. While Samsung issued a voluntary recall on September 2, the United States government issued a mandatory recall on the 16th. The Bank of America note does not mention Samsung at all.