Apple Stock Gets Boost from Wireless Carrier Incentives

Bank of America analyst Wamsi Mohan maintained his Buy recommendation on Apple (AAPL) stock, citing wireless carrier incentive programs as a key factor in offsetting the $100 price increase for iPhone 18 models.

The top-tier trade-in incentives for iPhone 18 Pro Max have reached $1,200, an increase from $1,100 for the prior generation and $1,000 before that. Mohan believes these enhanced promotional offers effectively neutralize Apple's pricing strategy for this cycle.

Mobile service providers are rolling out 36-month payment structures that integrate device installments with monthly service fees, making it more accessible for consumers to upgrade to new devices. However, the promotional strategies aren't universally available and require recent-model devices from subscribers.

The initial out-of-pocket expenses remain between $291-$405 based on device selection, and trade-in programs don't eliminate all immediate expenses. Buyers must cover activation charges plus applicable taxes calculated on the device's full retail value.