AT&T to offer new iPhone 12 for $0, with a few strings attached, to boost 5G adoption

AT&T plans to offer the new 5G-capable iPhone 12 for $0 to new and existing customers on its AT&T Unlimited plan with the trade-in of an older, working iPhone.

Pre-orders for the new line of Apple phones begins Friday and the devices will be available in stores and online on Oct. 23.

The Dallas-based carrier’s no-cost deal for the iPhone 12 requires a trade-in of an iPhone 8 or newer model. AT&T will cover the monthly installment costs of the phone through a credit on the customer’s bill, according to the company.

AT&T said it will offer similar deals on Android-based phones from Samsung, LG, Motorola and Google.

“It’s been a challenging year, so to show appreciation for our existing customers, and welcome new ones, we are thrilled to put forth this new, unheard offer,” AT&T Communications CEO Jeff McElfresh said in a statement. “No matter which smartphone you want or whatever Unlimited plan you choose, our best deals are for everyone.”

The offer comes at a time when analysts expect 5G adoption to accelerate in the coming months, driven mostly by the introduction of Apple’s first 5G-capable phone. Public adoption of 4G devices saw a boost in 2013 when Apple released its first 4G phone, the iPhone 5.

Analysts have worried that the iPhone 12 1/4 u2032s relatively high sticker price at launch could mean slower adoption by consumers, a trend that AT&T’s $0 offer could help head off. The latest 5G phones released by manufacturers like Samsung have run on average more than two times the price of similar 4G-capable phones, according to market intelligence firm IDC.

AT&T is banking on the strength of its wireless business, to offset losses this year in its entertainment enterprise, WarnerMedia, which has taken a hit from theater closures and dsiruptions to production.