BofA Secures Carrier Incentives for Apple, Keeps 'Buy' Rating

BofA Securities has maintained its 'Buy' rating for Apple stock, citing increased carrier incentives for iPhone purchases. The firm reiterated a price target of $370.00, which suggests roughly 11% upside to the current market price of $332.41.

The higher promotions offered by U.S. wireless carriers have largely offset Apple's increased pricing this year. For example, Verizon and AT&T are offering maximum trade-in credits of $1,200 for iPhone 18 Pro Max purchases, up from $1,100 for the iPhone 17 Pro Max and $1,000 for the iPhone 16 Pro Max.

Carrier financing programs improve affordability by bundling device financing with wireless service and spreading payments over 36 months. Lead times indicate that iPhone 18 Pro and Pro Max shipment times are less extended compared to last year, despite the higher carrier subsidies.