Following Apple’s Wednesday announcement of its most expensive smartphones to date, U.S. wireless carriers have unveiled initial promotions aimed at reducing the upfront cost for consumers. The new lineup includes the iPhone 18 Pro, starting at $1,199, the iPhone 18 Pro Max, which begins at $1,299, and the company’s first foldable device, the iPhone Duo, priced at $1,999.
Analysts note that while the pricing reflects strong discipline amidst memory shortages, the high cost could dampen demand. According to UBS analyst John Hodulik, Apple is relying on leasing options, trade-in programs, and carrier subsidies to mitigate the impact of these prices on sales.
T-Mobile is offering discounts ranging from $300 to $1,200 on the iPhone 18 Pro models, depending on the selected service plan and traded-in device. The carrier also provides up to $1,299 toward the Pro Max and includes deals on new Apple Watches and accessories. Similarly, AT&T is capping its promotional discount at $1,200 for qualifying trades.
Verizon’s strategy centers on its Simplicity Pro plan, which allows customers to acquire the iPhone 18 Pro for $80 per month. The carrier also offers up to $1,200 in trade-in credit toward new iPhones.
While Apple’s website features promotions from T-Mobile and AT&T, it notes that customers across all three carriers are eligible for up to $885 off an iPhone Duo with a trade-in. However, the device can still retail for as much as $3,199 outright.
Kutgun Maral, an analyst at Evercore ISI, described the carrier offers as a “targeted escalation” rather than the start of a broad price war. He highlighted that T-Mobile is focusing incentives on higher-tier new lines, while AT&T is structuring promotions to provide parity between new and existing customers. Maral added that he is awaiting further details on whether carriers will meaningfully subsidize the Duo.
AT&T CFO Pascal Desroches indicated during a Citi conference that consumers will likely continue to see higher out-of-pocket costs despite promotions. Consequently, Apple has expanded its Apple Upgrade program, launched in July in partnership with fintech company Klarna. This leasing option allows iPhone 18 Pro buyers to pay as little as $34.99 a month over 24 months. For the foldable Duo, monthly payments start at $57.99 over two years or $82.99 over 12 months.
Data from LendingTree suggests that purchasing technology devices is the second most common reason Americans utilize buy-now, pay-later services, indicating growing consumer reliance on flexible financing for high-ticket electronics.
Is the Duo actually any good though? Sounds like hardware in search of a reason to exist at that price point.
I didn’t realize carriers were pushing BNPL so hard now. It feels like a trap for people who just want the latest gadget.
$1,999 is insane for a phone. I’ll stick to my current device until the prices make sense again.