Apple iPhone Demand Expected to Hold Up Despite Higher Prices
Bank of America analyst Wamsi Mohan believes that Apple's iPhone demand will remain strong despite higher prices, thanks to increased carrier incentives. The maximum trade-in credit for the iPhone 18 Pro Max has risen to $1,200 from $1,100 for its previous generation.
This increase in carrier promotions roughly matches Apple's $100 price hike on the latest Pro models. Carriers such as T-Mobile and AT&T are offering up to $1,200 off the new iPhones with a trade-in, while Verizon has rolled out comparable trade-in promotions tied to its premium unlimited plans.
The carrier incentives typically come in the form of monthly bill credits spread over 24 to 36 months rather than an upfront discount. Mohan reiterates his 'Buy' rating and $370 price target on Apple shares, citing higher promotions as a support for iPhone demand.