TLDR
- Bank of America reiterated a Buy rating on Apple with a $370 price target
- Max trade-in credits for the iPhone 18 Pro Max rose to $1,200, up from $1,100 last year
- Carrier promotions largely offset Apple’s $100 price hikes on the iPhone 18 lineup
- Customers still face upfront costs of roughly $291–$405 depending on model
- Samsung has reportedly agreed higher memory prices with Apple, pointing to another price hike in 2027
Bank of America analyst Wamsi Mohan reiterated a Buy rating on Apple (AAPL) and a $370 price target on Thursday, saying carrier promotions have risen enough to offset the iPhone 18’s higher prices.
AAPL stock was up 1.38% on the day.
The iPhone 18 Pro and Pro Max launched with price tags $100 higher than last year’s models. Even older iPhone 17 and 16 series devices were not spared the increase.
Mohan noted that maximum trade-in credits for the iPhone 18 Pro Max have climbed to $1,200, up from $1,100 for the previous model and $1,000 the year before that.
“The higher promotions largely offset Apple’s higher pricing this year,” he wrote.
Carriers are also offering 36-month financing plans that bundle device payments with wireless service, which Mohan said further improves affordability for buyers.
Lead times suggest the iPhone 18 Pro and Pro Max are shipping faster than last year, and Mohan said the richer subsidies could continue to support demand through the launch window.
The promotions are not aimed at everyone equally. Carriers are targeting customers with newer devices, focused on accelerating upgrades from that group specifically.
Verizon (VZ) and AT&T (T) generally require an iPhone 14 or newer to qualify for the maximum credit. T-Mobile (TMUS) sets the bar higher, requiring an iPhone 15 Pro or newer.
Upfront Costs Still Apply
Trade-ins do not wipe out all costs at checkout. Customers still owe an activation fee plus tax on the full retail price, leaving an initial outlay of roughly $291 to $296 for the iPhone 18 Pro and $400 to $405 for the Pro Max.
The deals work in carriers’ favor too. They require customers to sign up for higher-tier unlimited plans, and trade-in credits are paid out as monthly bill credits over the installment period, helping lock in subscribers.
More Price Hikes Could Be Coming
The current round of price increases may not be the last. Reports from Korean publications say Samsung has been renegotiating DRAM and NAND prices with smartphone makers, and Apple has reportedly accepted the new terms.
Starting in Q1 2027, Apple is expected to pay close to $2.00 per gigabit of LPDDR5X RAM, up from $1.50 in Q3 2026. NAND storage prices are set to rise from $0.26 to $0.33 per gigabit over the same period.
Not every manufacturer went along with it. Oppo and vivo reportedly refused Samsung’s higher prices, and it remains to be seen which memory supplier they turn to for their next flagship devices.
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