Carriers fighting for 5G market share are using heavily discounted iPhones to incentivize customers to sign long-term contracts. In the U.S., T-Mobile is offering up to $850 off the cost of an iPhone 12 with a long-term contract. This is the largest promotion the industry has seen related to iPhone launches, topping the $700 credit offered by Verizon in 2019.
- The competitive offers, which include a minimum of $30 off any iPhone purchased from Verizon or AT&T, are expected to increase Apple's sales drastically.
- Ensuring customers sign a long term contract for the new 5G phones gives networks more flexibility as they continue to build their 5G networks, which are still under construction.
- Apple claims that plans for a significant redesign in three years align it with these contracts' length.
- Verizon – Free iPhone 12 for customers who trade in an older phone and agree to an $80/month plan for 24 months.
- T-Mobile – $850 credit paid out over 30 months to those that trade in an existing phone and join a T-Mobile plan.
- AT&T – Free iPhone 12 for customers who trade-in an iPhone 8 or newer phone and purchase a plan costing at least $65/month for 30 months.
- Sprint – $800 in credits towards your Sprint bill if you purchase an iPhone 12 and trade-in an iPhone XS or newer iPhone.