BofA Securities Reiterates Buy on Apple, $370 Price Target

BofA Securities analyst Wamsi Mohan reiterated a Buy rating and $370 price target on Apple (NASDAQ: AAPL).

“U.S. wireless carriers have increased the incentives offered for purchasing an iPhone, with maximum trade-in credits for the iPhone 18 Pro Max increasing to $1,200, up from $1,100 for the iPhone 17 Pro Max and $1,000 for the iPhone 16 Pro Max (Figure 1).

The higher promotions largely offset Apple’s higher pricing this year.

Similar to prior years, carrier financing programs improve affordability by bundling device financing with wireless service and spreading payments over 36 months.

While lead times indicate the iPhone 18 Pro and Pro Max shipment times are less extended vs last year, the higher carrier subsidies could continue to support iPhone demand.

Reiterate Buy on capital returns, eventual winner on AI at the edge and optionality from new products/markets.

Current trade-in offers suggest carriers remain focused on accelerating upgrades among customers with newer devices.

To qualify for the maximum $1,200 credit, Verizon and AT&T generally require an iPhone 14 or newer, while T-Mobile requires an iPhone 15 Pro or newer.

Carrier promos are also tiered according to plan, customer quality and number of lines.

Trade-in requirements related to device conditions continue to remain lenient, as AT&T and T-Mobile accept qualifying devices in any condition, while Verizon accepts devices in any condition except devices with battery damage.”

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