BofA reiterates a buy rating on Apple, noting that carrier trade-in incentives and financing models successfully mitigate higher iPhone prices, bolstering both device sales and carrier retention.
BofA reiterated its buy rating citing higher iPhone prices offset by carrier incentives, edge AI leadership, capital returns, and opportunities from new products and markets.
Verizon benefits from iPhone trade-in credits and 36-month financing that require higher-tier unlimited plans, supporting service revenue and retention.
AT&T benefits from carrier financing and trade-in programs that require premium plan tiers and drive retention.
T-Mobile benefits from its trade-in requirements and carrier financing model that supports service revenue and customer loyalty.
Bank of America maintains a buy rating on Apple, citing strong capital returns and edge AI leadership as key growth drivers. While iPhone prices have increased, aggressive carrier trade-in programs and 36-month financing plans from Verizon, AT&T, and T-Mobile effectively offset costs, supporting sustained service revenue and customer retention for the telecommunications sector.
Carrier incentives, including trade-in credits and 36-month financing, lower the upfront cost for consumers, which helps offset higher retail prices and encourages device upgrades.