Carrier Incentives Counter Apple's Price Hike for Latest Pro Models

Apple's latest iPhone prices have increased by $100 for Pro models, but US wireless carriers are countering this move with higher incentives to offset the costs for consumers. According to Bank of America analyst Wamsi Mohan, these promotions will continue to support iPhone demand.

Mohan noted that carrier credits roughly match Apple's price increases, with maximum trade-in credit for the iPhone 18 Pro Max rising to $1,200 from $1,100 for the previous model. This trend is evident across various carriers, including T-Mobile and AT&T, which are offering up to $1,200 in bill credits for customers trading in an eligible device.

The carrier incentives typically come in the form of monthly bill credits spread over 24-36 months rather than upfront discounts. Mohan reiterated a 'Buy' rating and a $370 price target on Apple shares, citing higher promotions as a key factor supporting iPhone demand.