Why wireless carriers are able to give out iPhone 14s

The unveiling of the latest iPhone 14 lineup earlier this week has already spurred a flurry of new promotions from wireless giants including AT&T, T-Mobile and Verizon.

All three of the major US carriers have announced deals that allow qualifying customers to get the latest Apple smartphone for free, under certain conditions, which often include trading-in an older iPhone model. AT&T and T-Mobile, for example, are both offering up to $1,000 credits, after trade-ins, for buying the iPhone 14 or iPhone 14 Pro. Verizon is offering up to an $800 credit after a trade-in for the iPhone 14 or iPhone 14 Pro, per some of the offers rounded up and touted by Apple.

While Apple managed to keep the base price for the latest iPhone the same as it was for the previous generation, the iPhone 14 still starts at a hefty $799, and $899 for the 14 Plus model. Meanwhile, the higher-end 14 Pro model starts at $999 and the 14 Pro Max at $1,099. At a time when inflation is pinching consumers from all sides, deals from carriers can help make the latest iPhone more affordable.