Aggressive $1,200 carrier trade-in credits are offsetting Apple's $100 iPhone 18 Pro price hike, though consumers face significant upfront fees and 36-month service lock-ins.
Apple's $100 price increase on Pro iPhones is largely offset by higher carrier trade-in credits, and BofA maintains a buy rating with a $370 price target.
Verizon offers up to $1,200 trade-in credit for iPhone 18 Pro Max, which could pressure margins if subsidies persist.
AT&T offers up to $1,200 trade-in credit for iPhone 18 Pro Max with a $35 activation fee, potentially affecting customer acquisition costs.
T-Mobile offers up to $1,200 trade-in credit but requires premium plan tiers, which could impact churn when credits expire.
Bank of America published an analyst note on iPhone carrier promotions, but the note does not directly affect its own stock.
Apple's $100 price increase on the new Pro iPhone lineup is being effectively neutralized by aggressive carrier promotions. Bank of America analysts report that Verizon, AT&T, and T-Mobile are offering up to $1,200 in trade-in credits, though these deals require long-term service commitments and premium plan tiers. While this strategy supports Apple's sales, it raises questions regarding long-term margin pressure and customer churn for the major U.S. carriers.
While credits can reach $1,200, they are distributed as monthly bill reductions over 36 months. Consumers must still pay upfront sales tax on the full retail price and activation fees, often totaling several hundred dollars.
No, the maximum credits are tiered based on existing device age, customer status, and the specific premium service plan chosen by the user.