Apple Inc (NASDAQ:AAPL, XETRA:APC) higher iPhone prices are largely offset by carrier incentives which reiterated its “buy” rating
The bank cited capital returns, expected leadership in AI at the edge, and opportunities from new products and markets.
BofA analysts expect higher average selling prices and stronger Duo uptake to support a strong iPhone cycle, while Siri AI should increase interest in upgrades.
However, shipment lead times for the iPhone 18 Pro and Pro Max are less extended than last year.
Maximum trade-in credits for the iPhone 18 Pro Max have risen to $1,200 from $1,100 for its predecessor.
Verizon Communications Inc (NYSE:VZ, XETRA:BAC) and AT&T Inc (NYSE:T, XETRA:SOBA) generally require an iPhone 14 or newer for maximum credits, while T-Mobile requires an iPhone 15 Pro or newer.
AT&T and T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) accept qualifying devices in any condition; Verizon does too, except those with battery damage.
Separately, carrier financing improves affordability by spreading device payments over 36 months and bundling them with wireless service.
Buyers still face activation fees of $35 to $40 and taxes on the full retail price.
In the broker’s scenario, including $150 for AppleCare+, initial costs with maximum credits reach $291 to $296 for the Pro and $400 to $405 for the Pro Max.
Carriers benefit because customers must take higher-tier unlimited plans and receive trade-in credits over 36 months, supporting service revenue and retention.
The shares traded at $336.12, up 1%, on Thursday afternoon.
