Why wireless carriers can give iPhone 14s for free

The Big Three US carriers have announced deals that allow eligible customers to get the latest Apple smartphone for free, under certain conditions, which often include trading in an older iPhone model. For example, AT&T and T-Mobile are offering up to $1,000 in credits, after swaps, for an iPhone 14 or iPhone 14 Pro. Verizon is offering up to $800 credit after you trade in your iPhone 14 or iPhone 14 Pro, for all some of the rounded up and promoted offers apple.

“The other reason, though, that I think they’re able to do this is that iPhones hold their values ​​historically well,” he added, noting that many offers include trading in an older iPhone model to qualify for discounts or free of charge on the latest hardware. Many of these companies then sell pre-owned and refurbished iPhones.

However, it is important to read the finer details, as these deals often come in the form of contracts, a common practice since cell phones have become so ubiquitous. Forte noted that if you’re going to take advantage of some iPhone 14 promotions but then try to cancel service after a month or two, you’ll likely be responsible for “much more than the purchase price” of the new phone.

Apple and carriers may also benefit from the increasing popularity of buy now and pay later plans among consumers in recent years, according to Julie Ask, vice president and principal analyst at Forrester. Therefore, more people looking for options to pay for a new iPhone over time may be particularly drawn to carrier deals that expire including discounts on the device and cellular plans, even if they have a longer commitment.

“There has been a slight increase in consumers’ willingness and interest in paying over time,” she told CNN Business. Still, she said, carriers often look to “lock people in for at least two years, so that’s the fine print I’ll be looking for.”