Want Apple's $1,999 foldable iPhone Duo? Here's what T-Mobile, AT&T and Verizon are doing to lower the cost.

By William Gavin

Wireless carriers are rolling out their initial iPhone promotions, but analysts say there's no price war just yet

Apple unveiled its long-awaited first foldable smartphone, the iPhone Duo, on Wednesday.

Apple just introduced the world to its most expensive smartphones to date. Now, consumers want to see if wireless carriers will make getting one worth their while.

On Wednesday, Apple (AAPL) unveiled the iPhone 18 Pro and iPhone 18 Pro Max, promising stellar performance - at a steep cost. The 18 Pro starts at $1,199, while the 18 Pro Max will cost customers at least $1,299. Apple also introduced its first foldable smartphone, a model called the Duo that will start at $1,999.

Nabila Popal, a senior research director at IDC, told MarketWatch that the Duo's starting price "demonstrates incredible pricing discipline" amid a memory shortage. Still, the new phones are expensive, and that could weigh on consumer demand, according to UBS analyst John Hodulik.

That's why Apple will be leaning on leasing, trade-ins and carrier subsidies to limit the impact of its prices on sales, JPMorgan's Samik Chatterjee said in a client note. So far, T-Mobile (TMUS), AT&T (T) and Verizon Communications (VZ) have revealed initial promotions.

T-Mobile's promotions include offering between $300 and $1,200 off 18 Pro models, depending on the service plan and device traded in, as well as deals on new Apple Watches and accessories. T-Mobile is also offering up to $1,299 toward the Pro Max, while a similar deal from AT&T (T) caps out at $1,200.

Verizon's deals are centered around its Simplicity Pro plan, which will let buyers get the iPhone 18 Pro for $80 a month. With a trade-in, Verizon customers can also get up to $1,200 off a new iPhone.

On Apple's website, customers of any of the three carriers can also get up to $885 off a new Duo model with a trade-in. However, only AT&T and T-Mobile promotions are featured on the website.

Evercore ISI analyst Kutgun Maral said the promotions from T-Mobile and AT&T appear to be "targeted escalation," rather than the first shots fired in a price war. T-Mobile, Maral said, is focusing its promotions on higher-tier new lines, while AT&T's promotional structure focuses on parity between new and existing customers.

Maral said he is waiting to see if any of the companies "meaningfully" subsidize the Duo, which can cost up to $3,199 outright.

Even with subsidies from carriers, the Duo and Apple's other smartphones could still wind up being pretty pricy. Pascal Desroches, the CFO of AT&T, said at a Citi conference on Thursday that "the consumer is going to have to end up paying more" as phone prices rise, even with promotions.

That could drive interest in Apple Upgrade, a leasing program introduced in July in partnership with Klarna (KLAR), the financial-technology company best known for its buy-now, pay-later products. According to LendingTree data, the second-most-common reason Americans cite for using a BNPL service is buying technology devices.

For the iPhone 18 Pro, Apple Upgrade allows customers to pay as little as $34.99 a month across a 24-month lease. Instead of shelling out at least $1,999 up front, Duo buyers can lease their foldable for $57.99 a month across a two-year schedule, or $82.99 a month across 12 months.

"Consumers apply at Apple and then pay and manage with the Klarna app, creating a direct relationship with new U.S. consumers that supports Klarna's ability to grow engagement, [average revenue per active client] and profitability," Klarna CEO Sebastian Siemiatkowski told investors last month.

-William Gavin

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09-10-26 1825ET