Carriers Soften Apple's Price Hike Blow with Aggressive Promotions

Apple's decision to raise iPhone prices may not have as much of an impact on demand as expected, thanks to US wireless carriers' aggressive promotions.

Analyst Wamsi Mohan at Bank of America noted that maximum trade-in credits for the iPhone 18 Pro Max have increased to $1,200, up from $1,100 last year and $1,000 the year before.

This higher promotion largely offsets Apple's higher pricing this year, according to Mohan, who maintains a Buy rating on the stock with a price target of $370.

Carriers are also offering financing programs that bundle device payments with wireless service over 36 months, making iPhones more affordable for customers.

The promotions are targeted at customers with relatively recent iPhones, and carriers require an iPhone 14 or newer to receive the maximum credit from T-Mobile and AT&T, while Verizon requires an iPhone 15 Pro or newer.