Is This the Worst Place to Buy a Smartphone?

Where NOT to Buy a Mobile Phone

In my experience, the retail stores of the Big Three major carriers are the worst places to buy a smartphone. Their prices tend to be considerably higher than the same phones offered through other outlets with the same service. My friend experienced this the hard way when her phone broke and she went to a Verizon store. She liked the popular Samsung Galaxy S24 Ultra; the 512GB model has a price tag of $1419. Verizon offered it for 36 payments of $39.44/month so she bought it.

The next day she happened to visit the Samsung website, and found the same phone on sale for $1299. That made her curious, so she visited BestBuy online and found that phone selling for $999! Sure, it was refurbished, but it came with a warranty, and a savings of $420.

When she told me that, I did a little detective work and found a Samsung Galaxy S24 Ultra smartphone on Amazon for $847! That one was a 256GB "Amazon Renewed" model (a pre-owned product inspected and tested), but wow, what a long way from the original price at the "official" store. I think a lot of people would jump at the chance to save $572 on a like-new phone with a warranty.

The moral of this story is that the obvious place to buy a phone is probably going to be the most expensive. Also, the last time I needed a new phone, I was under the false impression that third-party resellers could not replace the phone on an existing Verizon contract, so I was stuck buying through Verizon. That isn’t true, I was happy to learn. The third-party resellers can access your AT&T, T-Mobile or Verizon account and make any changes necessary.

The Mobile Phone Food Chain

The phone hardware industry has three tiers: manufacturers who set artificially high MSRPs; carriers who give illusory discounts tied to contracts; and resellers who buy hardware and contracts in bulk. The last group is the most numerous, so competition lowers prices most effectively.

Some good places to shop for bargains on the latest smartphones include your local Best Buy, Staples, Costco, and WalMart stores. Amazon Wireless and Swappa are two online phone sellers that offer excellent deals.

Popular smartphones such as Samsung's Galaxy, Google Pixel, and the OnePlus Open are all available at prices much lower than you'll find at the carrier's company storefronts. One exception would be the latest iPhone, and that's because Apple keeps tight control over pricing, even at third-party stores. The iPhone 15 Pro Max with 512GB will cost cost you $1399 in the Apple Store, or anywhere else you look. But if you're willing to settle for something other than the latest and greatest, you can find an older, refurbished model for much less.

I'm not trying to say that the carriers' stores are dishonest, they just don't offer the best deals, because they don't really have to. And in fairness, I should mention that the official Verizon, AT&T, Sprint and T-Mobile stores do offer deals on low-priced mobile phones. Sometimes you can find smartphones at a deep discount or even for free, with a two-year contract. But these are never the popular models that everyone wants. They might be last year's model, refurbished units, or just poor sellers they want to move.

If you need a new phone, with or without a new contract, start shopping at the bottom of the food chain. You’ll find better prices and more information about your options than carriers will give you willingly.

Of course, by “bottom” I do not mean some guy selling out of his trunk in a Walmart parking lot. If some stranger accosts you with an elaborate tale about having to sell iPhones for $100 to avoid trouble with his boss for ordering too many, do not do him the favor that he requests. You’re likely to get your shrink-wrapped package home, open it, and find a piece of cardboard with the word “iPhone” taped to it.

Craigslist and eBay are risky places to buy phones, too, especially if they are advertised as “new in box.” One of my all-time favorite “Judge Judy” episodes involves an eBay scammer who got her comeuppance as only Her Honor can deliver it.

What's your favorite place to buy a mobile phone? Post your comment or question below…