Tag Archives: cell phone service

Looking for a Good Deal on an iPhone? Head to a Retail Store

By now it’s nothing new to see smartphone kiosks throughout Target, Walmart, or any other chain store. To optimize user experience and to make the wait time much shorter, phone companies have teamed up with these moguls to greatly increase the locations in which consumers can purchase their next phone. And considering the shorter lines, the increased customer service (an aspect phone providers are seriously lacking), and cheaper prices, shoppers are seeing the value as well.

For example, Target sells the new iPhone 5C for $50 on-contract, regardless of carrier. The store also offers a trade-in value or store credit for the user’s original phone. The iPhone 4S could net $105 in good condition, leaving more than enough leftover for a case, accessories, or whatever else you need from Target. In comparison, walk into the cell carrier’s store and an iPhone 5C is $99 on top of an $88-ish trade-in value, for the same phone.

iphone-5c

So why would anyone go to a carrier store, especially when they’re likely spending time at retail stores anyway? Users can save money, avoid the lines, and pair it with their regular shopping in the process.

Is There a Catch?

This makes us wonder what the carrier stores are getting out of it (such as Sprint, AT&T, or Verizon). They offer a shamble of a “deal” in comparison, yet they still seem to be thriving, in both corporate status and in company branches. The only real perk is that business phones have to be bought through the carrier no matter what. Are they making enough off these company phones? Or is service so incredibly profitable that it can pay the bills on its own?

Then again, maybe Apple, Motorola, HTC, Samsung, etc. just charges them more, knowing they’ll pay whatever fees they set.

No matter the reality behind these varied prices, it’s safe to say that retail stores offer the better deal for new iPhones and trade-ins. While a traditional contract (and upgrade date) is still needed, it’s a great way to bypass some paperwork while saving a few dollars along the way.

The next time you’re ready to venture into the latest iPhone, remember that a carrier store isn’t the only option. In fact, trying something new just may get you a better deal.

Why are unlocked smartphones so expensive?

locked iphoneWhen signing a new contract plan, users can walk away with a brand new phone for only a couple hundred dollars. With the right options, rebates, and carrier, users may end up with a free, or nearly free version of their favorite smartphone. But it’s the stipulations that provide a good deal. Factor in contract fees and a lack of flexibility, and there’s very little room for wiggling.

Enter the super expensive “unlocked” phone. Phone service providers saw that their customers needed the option to come and go as they pleased, and they decided to let them. By charging them exorbitant amount. Purchasing a new, unlocked iPhone 5 will cost a hefty $649.99 – $600 if buying from a private party. And that doesn’t even include any service to go with it, phone or Internet. In contrast, signing a two-year contract will bring the same phone to $199.99.

What Gives?

A computer can easily be purchased for the price of an unlocked smartphone. It may not be the best or biggest, but it’s still a computer with all its working functions, software, available updates, and whatever else that makes electronics so expensive. Tablets – the fancy ones – even cost less than an unlocked smartphone. Therefore extra fees can’t be chalked up to hardware, parts, or even display.

So why are such large price tags being slapped on our phones? Many argue that users actually pay more over time with their contract deals, as there is a monthly fee built into service agreements. But unless that charge is named “sales tax” or “4G service,” most users would argue against said claim. Others state that the cell phone companies are subsidizing phone company expenses. True or not, this doesn’t account for why phones cost so much more than tablets and computers. If simple cell phones are given away, it can’t be the calling feature racking up the fees, right?

Is it really just about convenience? Even after one’s contract has been fulfilled, the phone belongs to Verizon, or AT&T, or whatever other service provider has stolen the device’s soul. Users aren’t locked into that phone indefinitely, per say, but without some possibly illegal adjustments, the devices are.

While the public may not understand these serious price hikes, it doesn’t look as though they’re going to reduce anytime soon. Fans of the iPhone simply have to decide whether it’s worth paying a few extra dollars, or sitting heavily under someone’s thumb.