How Apple’s iPhone 18 price increases impact your trade-in value at Verizon, T-Mobile, or AT&T
Wall Street thinks sales of the pricier new Apple (AAPL) iPhone 18 lineup are off to a brisk start. That’s good news from an economic standpoint because it’s not cheap to buy one in-store, despite stepped-up carrier promotions.
US wireless carriers Verizon (VZ), T-Mobile (TMUS), and AT&T (T) have increased incentives for iPhone purchases, according to analysis by Bank of America’s Michael Funk. The maximum trade-in credits for the iPhone 18 Pro Max increased to $1,200, up from $1,100 for the iPhone 17 Pro Max and $1,000 for the iPhone 16 Pro Max. The trade-in credit for the iPhone 18 Pro is also $1,200.
But that’s where the savings end.
As part of the financing, customers are required to pay an activation fee ($35-$40) and tax on the device’s full retail price. The cost increases by $150 with the addition of an AppleCare+ plan.
Based on a scenario where a customer purchases the new iPhone by trading in a phone that qualifies for the highest credits, the initial cost, says Funk, is $291-$296 for the new iPhone 18 Pro and $400-$405 for iPhone 18 Pro Max.
Call it a sign of the times.
Apple officially instituted a $100 price hike across its entire flagship smartphone lineup this year, raising the starting price for its latest hardware. The hikes reflect surging global memory-component costs and elevated chip manufacturing expenses.
The new foldable iPhone Duo starts at a price of $1,999.
Preorders for the phone began on Sept. 12, with the hardware officially hitting stores today.
“We expect a strong iPhone cycle with the higher ASPs [average selling prices] and uptake of Duo. Siri AI should drive increased interest in upgrades,” Funk said.
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the ‘Power Players With Brian Sozzi’ podcast and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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