- Apple's higher iPhone 18 prices may be offset by expanded carrier trade-in offers
- Trade-in credit for iPhone 18 Pro Max increased to $1,200 from $1,100 last year
- Carrier financing spreads device cost over 36 months with wireless service plans
Apple's higher pricing for the latest iPhone 18 lineup may not translate into a similar increase in what some US customers ultimately pay, as wireless carriers have expanded trade-in incentives and financing offers, according to an Investing.com report.
Bank of America analyst Wamsi Mohan, who reiterated a Buy rating on Apple with a $370 price target, said carrier promotions have increased enough to largely offset Apple's higher device prices.
The maximum trade-in credit for the iPhone 18 Pro Max has risen to $1,200, compared with $1,100 for the previous model and $1,000 two years earlier. Mohan said the richer promotions could help support demand for the new lineup.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Carrier financing is another factor reducing the immediate cost for eligible customers. Under these programmes, the device cost can be spread across 36 months, generally alongside a wireless service plan.
Also Read | Did iPhone 18 Pro Just Beat The New Mac Mini? First M6 Benchmarks Leak
The promotional offers are particularly focused on customers with relatively recent iPhones, according to the analyst. Verizon and AT&T generally require an iPhone 14 or newer for the maximum trade-in credit, while T-Mobile requires an iPhone 15 Pro or newer.
However, the trade-in offers do not completely remove customers' upfront expenses. Buyers still have to pay activation charges and taxes calculated on the phone's full retail price.
According to Mohan's estimates, the initial outlay is around $291-$296 for the iPhone 18 Pro and approximately $400-$405 for the iPhone 18 Pro Max, even with the available trade-in incentives.
The stronger promotions could also benefit carriers by encouraging customers to move to higher-tier unlimited plans. Trade-in credits are generally provided through monthly bill credits over the financing period, which can also help carriers retain subscribers.
Also Read | Apple To Expand Foldable Lineup With iPhone Duo Max, SE And Mini: Report
Mohan noted that current lead times indicate the iPhone 18 Pro and Pro Max are shipping faster than last year, while the increased subsidies could provide additional support for demand.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
