Key Takeaways
- Bank of America maintained its Buy recommendation on Apple with a $370 price objective
- Top trade-in incentives for iPhone 18 Pro Max increased to $1,200, compared to $1,100 for the previous generation
- Wireless carrier promotions effectively neutralize Apple’s $100 price increases across the iPhone 18 series
- Initial out-of-pocket expenses remain between $291ā$405 based on device selection
- Samsung has allegedly negotiated elevated memory pricing with Apple, suggesting potential price increases in 2027
Wamsi Mohan, an analyst at Bank of America, reaffirmed a Buy recommendation on Apple (AAPL) with a $370 price objective Thursday, stating that wireless carrier promotional offers have expanded sufficiently to counterbalance the elevated pricing of the iPhone 18 lineup.
AAPL stock advanced 1.38% during the trading session.
The iPhone 18 Pro and Pro Max debuted with retail prices $100 above their predecessors. The price adjustments extended to legacy iPhone 17 and 16 lineup models as well.
Mohan observed that top-tier trade-in incentives for the iPhone 18 Pro Max have increased to $1,200, rising from $1,100 for its predecessor and $1,000 two generations prior.
“The enhanced promotional offers substantially neutralize Apple’s pricing elevation this cycle,” he stated.
Wireless providers are additionally rolling out 36-month payment structures that combine device installments with service subscriptions, which Mohan indicated enhances accessibility for consumers.
Delivery timeframes indicate the iPhone 18 Pro and Pro Max are arriving quicker than the previous year’s models, and Mohan suggested the expanded subsidies may sustain momentum throughout the initial sales period.
The promotional strategies are strategically targeted. Wireless carriers are prioritizing subscribers with recent-generation devices, concentrating on expediting upgrade cycles within this demographic.
Verizon (VZ) and AT&T (T) typically mandate an iPhone 14 or later model to receive maximum trade-in value. T-Mobile (TMUS) maintains stricter eligibility, requiring an iPhone 15 Pro or more recent device.
Initial Payments Required
Trade-in programs don’t eliminate all upfront expenses. Buyers must cover activation charges plus sales tax calculated on the complete retail value, resulting in immediate payments ranging from $291 to $296 for the iPhone 18 Pro and $400 to $405 for the Pro Max variant.
The arrangements benefit carriers substantially. They mandate enrollment in premium unlimited service tiers, and trade-in values are distributed as monthly account credits throughout the financing term, effectively securing long-term customer retention.
Additional Price Increases May Loom
The present pricing adjustments might not represent the final increase. Reports from South Korean media outlets indicate Samsung has been renegotiating DRAM and NAND pricing with smartphone manufacturers, and Apple has allegedly agreed to the revised terms.
Beginning Q1 2027, Apple is anticipated to pay approximately $2.00 per gigabit of LPDDR5X memory, escalating from $1.50 in Q3 2026. NAND flash storage costs are projected to climb from $0.26 to $0.33 per gigabit during the identical timeframe.
Not all device makers accepted the arrangement. Oppo and vivo allegedly declined Samsung’s elevated pricing structure, and the alternative memory suppliers they’ll utilize for upcoming flagship models remains uncertain.
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