Thinking of a carrier deal to get that new iPhone 17? You may want to read this first.

Carriers are offering tempting deals on the new iPhone 17, but that tempting carrier deal comes with a warning from Bloomberg's Apple expert, Mark Gurman. The promotions often lock you into long-term commitments and expensive plans, making that "free" phone anything but.

So, what's the catch with these iPhone deals?

With every new iPhone launch comes a wave of eye-catching promotions from carriers like Verizon, AT&T, and T-Mobile promising hundreds of dollars off, or even a "free" device. The setup is simple: you trade in an older phone to get some credit, and the carrier "tops you off" with monthly bill credits to cover the rest. But as Mark Gurman points out in his latest Power On newsletter, these deals are just a modern take on the old subsidy trap.

It's a system designed to look like a great deal upfront while burying the real cost in the fine print. Before you commit, you need to understand exactly what you're signing up for.

The Hidden Catches of Carrier Deals

• Monthly Bill Credits: The discount isn't a lump sum. It's spread out in small credits over 24 or even 30 months.
• No Switching Allowed: If you leave the carrier before the term is up, you lose all remaining credits and will likely owe the full remaining balance on the phone.
• Locked Into Expensive Plans: To qualify, you almost always have to sign up for one of the carrier's priciest unlimited plans.
• Upgrade Lock-In: Want the iPhone 18 next year? You'll have to fully pay off the iPhone 17 first, forfeiting any future bill credits you were promised.

Why this fine print matters to you

It's a big of a mixed bag for consumers. These deals effectively kill your flexibility, locking you into a single carrier for up to three years. Your freedom to switch to a competitor who might offer better coverage or a cheaper monthly plan is gone.

This lack of freedom is the real price you pay. The carriers are banking on getting their money back, and then some, by forcing you onto their most expensive service plans for years. When you factor in the total cost of service over the 24- or 30-month term, you may find you're not saving any money at all compared to just buying the phone unlocked and choosing a more affordable plan.

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