Apple iPhone Demand Should Hold Up On Higher Carrier Incentives, BofA Says

BofA’s Wamsi Mohan said the maximum trade-in credit for the iPhone 18 Pro Max has increased to $1,200 from $1,100 for the prior generation.

• The increase in carrier incentives roughly matches Apple’s $100 price increase on the latest Pro models.
• Most carrier promotions are delivered through monthly bill credits over 24 to 36 months.
• Mohan reiterated a ‘Buy’ rating and $370 price target on Apple shares.

Apple (APPL) iPhones got more expensive this cycle, but U.S. wireless carriers are raising their incentives to largely offset the higher prices for consumers, according to Bank of America (BofA) analyst Wamsi Mohan.

Maximum trade-in credit for the iPhone 18 Pro Max has increased to $1,200, up from $1,100 for the iPhone 17 Pro Max, Mohan wrote. He said higher promotions should continue to support iPhone demand and reiterated a ‘Buy’ rating and a $370 price target on Apple shares.

AAPL stock edged 0.5% higher in pre-market trade on Thursday. On Stocktwits, retail sentiment around the iPhone maker slipped to ‘bearish’ from ‘neutral’ territory over the past day. 

Carrier Promotions Offset Higher iPhone Prices

The $100 increase in carrier credits roughly matches Apple’s $100 price increase for the latest Pro models. Apple priced the iPhone 18 Pro at $1,199, up from $1,099 for the iPhone 17 Pro, while the 256GB iPhone 18 Pro Max starts at $1,299.

Apple had signaled rising cost pressures ahead of the launch. The company has already raised prices across its Mac, iPad and home product lines in 2026, amid a global memory shortage that has pushed DRAM contract prices sharply higher.

T-Mobile, AT&T Raise Incentives

T-Mobile (TMUS) is offering up to $1,200 off the iPhone 18 Pro with a trade-in for new and existing customers on its Experience Beyond plan. The carrier is accepting eligible devices in any condition.

AT&T (T) is also offering up to $1,200 in bill credits for customers trading in an iPhone 14 or newer, regardless of condition. 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. Customers generally need to remain on an eligible plan for the full term to receive the maximum value.

Apple’s own trade-in program offers between $175 and $885 for an iPhone 13 or later model, depending on the model and condition.

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