Bank of America said US wireless carriers are offering stronger iPhone promotions this year, helping offset Apple’s higher prices and support demand for the new lineup.
In a Thursday note, analyst Wamsi Mohan reiterated a Buy rating on Apple shares and maintained a $370 price target.
Carrier Promotions Help Offset Higher iPhone Prices
According to Mohan, maximum trade-in credits for the iPhone 18 Pro Max have increased to $1,200.
That compares with $1,100 for last year’s model and $1,000 two years ago.
The analyst said these stronger promotions are helping compensate for Apple’s latest iPhone price increases.
As a result, customers may feel less of the impact from higher retail prices when upgrading through major US carriers.
Financing Plans Improve iPhone Affordability
Carrier financing programs are also making new iPhones more affordable.
Many wireless providers allow customers to spread device payments over 36 months while combining them with their monthly service plans.
This structure reduces the immediate financial burden of buying a new iPhone and can make premium models more accessible to consumers.
iPhone 18 Demand Gets Support From Larger Subsidies
Shipping times for the iPhone 18 Pro and iPhone 18 Pro Max currently suggest that the devices are reaching customers faster than last year’s models.
However, Mohan said stronger carrier subsidies could still provide meaningful support for demand.
The latest promotions appear to focus heavily on encouraging customers with relatively recent iPhones to upgrade sooner.
Verizon, AT&T and T-Mobile Target Newer iPhones
Eligibility for the largest trade-in credits depends on the customer’s current device.
Verizon and AT&T generally require customers to trade in an iPhone 14 or newer to qualify for the maximum promotional credit.
T-Mobile has stricter requirements, with customers typically needing an iPhone 15 Pro or newer to receive the highest available credit.
This strategy suggests that carriers are particularly focused on accelerating upgrades among customers who already own newer devices.
Trade-In Deals Still Come With Upfront Costs
Even with generous trade-in promotions, customers still face some initial expenses.
Buyers generally need to pay an activation fee as well as sales tax on the full retail price of the device.
According to Bank of America, the upfront cost for the iPhone 18 Pro is approximately $291 to $296.
For the iPhone 18 Pro Max, customers may need to pay around $400 to $405 upfront.
Carrier Deals Can Also Boost Customer Retention
The promotions are not only designed to benefit iPhone buyers.
Carriers often require customers to sign up for higher-tier unlimited plans to receive the maximum trade-in credit.
In addition, promotional credits are usually spread across monthly bills throughout the financing period rather than being provided immediately.
This approach helps carriers keep customers locked into their networks for longer periods.
Apple iPhone Price Hikes May Have Limited Impact
Apple’s higher iPhone prices could have created a larger affordability problem for consumers.
However, stronger trade-in credits and long-term financing plans appear to be reducing some of that pressure.
If major US carriers continue offering aggressive promotions, demand for Apple’s latest iPhone lineup could remain supported despite higher retail prices.
