Benzinga·2025-09-26 17:40Core Viewpoint - Enhanced trade-in deals and extended financing plans from U.S. carriers are positively impacting Apple's iPhone upgrade cycle for the iPhone 17, with analysts predicting a strong performance due to increased subsidies [1][3]. Carrier Promotions - Carriers are offering approximately $100 more in subsidies for new iPhones this year, making the devices more affordable through bundled financing with wireless service [2][3]. - Buyers can spread payments over 24 to 36 months, with some plans allowing the phone to be effectively free with eligible trade-ins [2]. Pricing and Subsidies - The entry price for the iPhone 17 Pro has increased to $1,099 for 256GB, compared to the iPhone 16 Pro's $999 for 128GB, necessitating higher subsidies [3]. - Current lead times for iPhone 17 shipping estimates are longer than last year, indicating strong demand [4]. Upgrade Cycle and Trade-in Offers - Carriers are encouraging upgrades on a two-to-four-year cycle, with trade-in credits reaching up to $1,100 for newer models [5]. - All three major carriers are accepting devices in any condition, including those that are cracked or non-working [5]. Upfront Costs - Despite trade-in offers, customers still incur upfront costs, including activation fees of $35–$40 and taxes based on the full retail price [6]. - Initial outlays for an iPhone 17 are estimated at approximately $229–$234, while the iPhone 17 Pro Max is around $380–$385 when utilizing the highest trade-in credits [6]. Carrier Conditions - Buyers must switch to specific unlimited plans, which may be more expensive than basic options, and promotional credits are applied monthly over the installment term [7]. - The typical installment terms are 24 months at T-Mobile and 36 months at Verizon and AT&T [7].