Carrier trade-in credits on the iPhone 18 Pro Max have climbed to $1,200, according to Bank of America, largely offsetting the $100 price increase Apple applied to its Pro models this year. Buyers still owe activation fees and sales tax on the full retail price upfront, and the top credit only goes to customers who trade in a recent handset and commit to a high plan tier for 36 months.
Apple raised the price of its Pro iPhones by $100 this year, with the Pro starting at $1,199 and the Pro Max at $1,299. Verizon, AT&T and T-Mobile responded with richer trade-in offers, and Bank of America worked out what those offers are actually worth.
Carrier credits nearly match Apple's price hike
Maximum trade-in credits for the iPhone 18 Pro Max have climbed to $1,200 at Verizon, AT&T and T-Mobile, Bank of America analyst Wamsi Mohan wrote in a Sept. 17 research note. That is $100 more than the top credit on the iPhone 17 Pro Max last year and $200 more than the iPhone 16 Pro Max the year before, and the richer promotions largely cancel out Apple's price increase, according to Mohan.
But the credits arrive as monthly bill credits spread across a 36-month installment plan, not as a discount at checkout. Leaving the carrier early stops the remaining credits, which keeps buyers tied to the account and to a plan tier that bills more each month than an entry-level one. Apple, by contrast, sells the same phones outright with no strings attached.
What buyers still pay upfront
Even at the maximum credit, buyers are not walking out for nothing. Carriers charge an activation or upgrade fee of $35 to $40, and sales tax is calculated on the phone's full retail price rather than the discounted amount. Using New York City sales tax, Bank of America found that upfront cost lands at $142 to $147 for the Pro and $250 to $255 for the Pro Max.
Add AppleCare+ at $150 a year and the total upfront cost runs $291 to $296 for the Pro and $400 to $405 for the Pro Max, according to the note. Verizon waives the activation fee for loyalty and new customers.
The top credit is not available to everyone. Verizon and AT&T generally require an iPhone 14 or newer to qualify, while T-Mobile sets the bar at an iPhone 15 Pro or newer and reserves its full credit for its Experience Beyond and Go5G Next tiers. AT&T excludes the 16e from the offer.
Mixed demand signals for Apple stock
Bank of America also found shipping times on the new Pro models running shorter than last year, which usually reads as softer initial demand. Even so, BofA kept a buy rating and a $370 price objective, about 11% above Apple's $332.41 close on Sept. 16. The firm had cut that target from $380 a week earlier, after the iPhone Duo came in cheaper than expected.
Source: TheStreet
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