What is the Worst Place to Buy a Smartphone?

Category: Mobile

Buying a smartphone today can feel like a minefield. With dozens of outlets, ranging from mobile carrier stores to big box retailers, to online marketplaces, and trade-in options, the choice can directly affect how much you pay, the warranty you get, and the headaches you may face later. The question is: What are the BEST and WORST places to buy a smartphone? To find out, let’s compare the main buying channels. Read on...

Where You Should NOT Buy a Mobile Phone

A year ago, three armed men entered a Verizon phone store in a Cleveland suburb. After restraining an employee with zip ties, they grabbed some cash, merchandise and left. One suspect was quickly captured. And then, the real robbery began. Or perhaps I should say, it continued. Read on to see why retail phone stores are not a great place to buy a phone, and other pitfalls to avoid.

One 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 with 512GB, which had 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.

The worst place to buy a smartphone

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 an "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. Let's look at some of the pros and cons of your options for a smartphone purchase.

Mobile Carrier “Brick and Mortar” Stores

Carrier-owned stores from Verizon, AT&T, T-Mobile, and others are often the most familiar places people think of when buying a smartphone. Walking into one guarantees new models and official warranties. However, they come with serious downsides:

Locked-in pricing and contracts: Carriers rarely discount flagship phones. A new iPhone will cost the same or more than in other retail outlets. Worse, they tie the purchase to financing plans or contracts, locking you in for two or three years.

Aggressive upselling: Carrier stores generate profit not from phones, but from plans, insurance, and accessories. Staff are trained to upsell you on expensive cases, screen protectors, or unnecessary plan add-ons.

Limited selection: Carrier stores showcase only what aligns with their promotions. Unlocked phones, budget models, or smaller brands are almost never available in-store.

Buying at a carrier shop can work if you absolutely want one-stop convenience, but it’s often among the most expensive options.

Big Box Stores (Best Buy, Walmart, Target)

Big box retailers offer wide accessibility and frequent promotions, but their pros are often outweighed by inconsistencies:

Better sales and bundles: Unlike carrier stores, Best Buy or Walmart sometimes discount smartphones directly or include gift card incentives. During holiday sales, you might save hundreds.

Carrier kiosks within stores: Many still push carrier financing, which brings the same contract headaches you get at dedicated carrier stores. Customers think they’re getting a special “Best Buy deal” but end up with the same restrictive carrier lock-in.

Hit-or-miss staff knowledge: Sales reps at big box stores often don’t specialize in smartphones. Getting real help for carrier compatibility or features is tricky.

Inventory risks: Budget models may be older stock with few future updates, and clearance sections sometimes mean you’re buying outdated tech.

For shoppers who time sales well, a big box can be a decent buy, but for those unaware of carrier lock-in traps, it can be nearly as bad as going straight to the provider.

Online Phone Stores (Manufacturer Direct)

Apple, Samsung, Google, and smaller brands now put their weight behind direct online sales. This is often the most reliable channel:

Guaranteed genuine products: You know you’re getting what you paid for.

Unlocked models available: Most official stores sell unlocked versions compatible with multiple carriers.

Trade-in programs: Apple and Google in particular offer predictable trade-in value, though not always top dollar.

The catch? Direct purchases rarely come with discounts unless tied to seasonal events. If you want the lowest price, you won’t find it here. Still, manufacturer stores are reliable, not the “worst” place.

Buying on Amazon

Amazon straddles the line between convenience and risk. On the plus side, it’s fast, competitive in price, and offers frequent discounts. But there are pitfalls:

Third-party sellers: The biggest issue is the presence of unauthorized sellers. Customers regularly report receiving refurbished or counterfeit phones sold as new.

Open-box trickery: Some phones are returned items resold under “Like New,” but may arrive with missing accessories or improper resets.

Lock confusion: Phones listed as “unlocked” sometimes arrive carrier-tied, leaving buyers with a frustrating return process.

Amazon can be great for seasoned buyers who carefully vet sellers and check for the “Ships from and sold by Amazon.com” label. But for casual buyers, Amazon can quickly turn into a nightmare.

Smartphones on eBay

Buying phones on eBay is even riskier than through Amazon. While bargains abound and used or refurbished models can be far cheaper, the disadvantages are hard to ignore:

No guaranteed authenticity: Fraudulent listings, counterfeit devices, and nonfunctional units are common. eBay’s buyer protection helps, but not without time, hassle, and potentially weeks waiting for refunds.

Hidden defects: Many listings for used phones don’t disclose weak batteries, cracked screens, or water damage.

Inconsistent warranty coverage: Unlike manufacturer-direct purchases, most eBay phones come without reliable warranty support.

While power buyers who know how to vet sellers may score deals, for most people eBay ranks very high on the “worst” list. This reminds me of the sad story of Kelly Filkins, a 26-year-old woman who got slammed by Judge Judy for taking $476 dollars for a pair iPhones advertised on eBay, and mailing the buyer just a PICTURE of the phones. Watch this classic Judge Judy episode from 2007 for the greatest barbecuing of a dumb crook in the history of television.

“Sell/Buy a Phone” Outlets (Gazelle, Swappa, EcoATM)

Specialized resale outlets like Gazelle or kiosks such as EcoATM market themselves as convenient digital pawn shops. Their claimed advantages are simplicity and speed, but real buyers often get a raw deal:

Overpaying for old models: Prices are often significantly higher than what comparable used phones cost elsewhere. A 2-year-old iPhone at Gazelle may cost nearly as much as a new one with a warranty directly from Apple.

Condition mismatch: What’s described as “Good” condition may arrive with deep scratches, battery issues, or screen burn.

Terrible resale trade-ins: If you’re trading in your old phone, expect rock-bottom offers compared to direct manufacturer trade-in programs.

Minimal support: If you get stuck with a dud, support is slim, and warranties are often very limited compared to buying new.

Swappa, another outlet in this category, works as a middle ground. It allows peer-to-peer sales with verification, but it still inherits risks of used-phone defects and minimal guarantees.

The Walmart Paking Lot

This should probably go without saying, but buying a smartphone from someone in a Walmart parking lot, a flea market, or a random person you met online is even riskier than all of the above mentioned options. These are sometimes called “gray market” or “meetup” transactions and carry unique dangers.

You have no recourse if scammed. There’s no warranty, receipt, or support; if the phone is defective, counterfeit, or stolen, you're out of luck. Sellers may offer phones that don’t work, are blacklisted, or that were acquired illegally. Activation may fail, leaving you with an expensive paperweight. Keep in mind also that meeting strangers in parking lots can be dangerous. There are risks of theft, fraud, or even personal harm, especially in unfamiliar or poorly lit areas. Always choose a safe, public meeting spot like a police station with video surveillance, and avoid cash transactions.

So, What’s the Worst Place to Buy a Smartphone?

Ranking all the options, here’s the breakdown:

  • Carrier stores: Worst for price and contract lock-in.

  • Big box stores: Better, but still plagued by upselling and hit-or-miss expertise.

  • Manufacturer online stores: Safe and reliable, but not the cheapest.

  • Amazon: Convenient but plagued by counterfeit/unauthorized sellers.

  • eBay: High fraud and defect risk.

  • Gazelle/phone resellers: Overpriced, low trade-in value, poor quality control.

  • Stranger in a parking lot: Most risky option due to fraud, danger, and lack of recourse.

Taking everything into account, the worst place to buy a smartphone depends on what you value least: If you hate overpaying and getting no support, Gazelle and EcoATM-type outlets rank the lowest. If you fear fraud and hidden issues, eBay (and that random guy in the parking lot) are the bottom of the barrel.

For most average buyers, though, the absolute worst is probably carrier-branded stores, because they combine high prices, forced contracts, and restrictive device locks. You’ll usually pay more, lose flexibility, and get upsold into features you don’t need.

So Where Should You Buy?

Okay, so all of the options have pros and cons, but you have to pick one, if you intend to make a smartphone purchase.

For me, it all boils down to trust. I've bought phones at all of these places (except the Walmart parking lot), taking into account that even a somewhat risky purchase can turn out to be a good bargain. Personally, I've had good experiences with sellers on Amazon, eBay and Swappa that have a good reputation and positive reviews. But I never buy the latest, greatest, top of the line phone. I'm currently carrying a Samsung Galaxy S22 that I bought a year ago for about $200. I've found that buying a model that's two generations removed from the current flagship phone provides all the features I need at a decent price point.

Where have you bought a smartphone? And what was your experience? Post your comment or question below...

 
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Most recent comments on "What is the Worst Place to Buy a Smartphone?"

Posted by:

Charley
16 Sep 2025

On rare occasions, the carrier stores have the best deal. When the S23 came out, T-Mobile (my carrier) had a special. Order the S23 Ultra in advance and get $800 off (whether your were a new or existing customer). Plus additional discount if you traded in a phone. So I went in ordered it on 2/6/2023. It wasn't supposed to ship until 2/16/2023 when Samsung was first going to ship them. But mine arrived 2/10/2023. I went in to check on cases and they were amazed that I had the phone. The didn't have cases yet. So I went to the Samsung store. They also were amazed that the I had the phone since they were shipping them yet!

It was paid off over 2 years (no interest) by additions to my bill. But since I wasn't planning on changing carriers that was fine with me.


Posted by:

hifi5000
16 Sep 2025

I avoid the smartphone like the plaque. I don't need the internet access plus the bells-and-whistles that come with them. All I need is voice and texting. I had several flip phones and they all did the job I expected.


Posted by:

BernieAmle
16 Sep 2025

I have bought a number of refurbished phones through Back Market and their descriptions and services are first class.


Posted by:

Renaud Olgiati
16 Sep 2025

In smartphones (as in all electronics) I always look for the (latest - 1) version, usually second hand but guaranteed working, on Amazon or Ebay.
Never been disappointed yet.


Posted by:

cropduster
16 Sep 2025

i've purchased at least a dozen iPhones through SWAPPA in the decade past. I've never had a problem. Why buy new when you can but someone else's "trade in" (or equivalent) in great condition for well under $150. Every used phone I've purchased thru SWAPPA has been excellent for all of my needs. At that cost, if one happened to be a bad phone or I even lost or had it stolen, I just forget it and buy another at those prices.


Posted by:

Wolf
17 Sep 2025

This is a great article presenting the good, the bad, and the ugly, regarding where to buy phones. I had my present iPhone for several years now, and it works fine. Recently, I switched service providers, and they send me "offers" to replace my phone with an upgraded newer phone. Well! The saying is that if it is not broken, don't fix it. I will NOT replace the phone and contribute to electronic waste problem.

Regarding the parking lot, I would never purchase a phone from anyone that comes to me in any parking lot "selling" phones. Some time ago I was at a Target parking lot, and some guy comes up to me selling watches. I told him that those are fake watches, and, if he does not leave me alone, I would call the police. That scared him away!

Thank you, Bob, for your many articles with essential information!


Posted by:

FactsRule
17 Sep 2025

I've used Swappa.com for many years very successfully and happily.


Posted by:

Ruth
17 Sep 2025

Bought my first two iPhones at a carrier store. After that, I migrated to an Apple store where the product knowledge was much better. Have never had problems with all my apps transferring to the new phone(s) until last month when Facebook didn't make it to the new phone and Facebook shut down my page. I've been trying to get it back for SIX WEEKS because Facebook has almost non-existent tech help. I am frustrated beyond belief and it's not the seller's issue, it's Facebook. 🤬


Posted by:

Herb K
17 Sep 2025

Bob - I got what I think is a GREAT deal from Consumer Cellular: A Google Pixel 10 (base model), 128GB, normally $799 for $399! That's 50% off! Cash price or finance over 24 months with no interest and no contract! I've only ever had cheap phones from Walmart so having a very capable, modern phone is a huge step up for me. I'm still getting used to it but so far, so good.


Posted by:

Jeanine
17 Sep 2025

Another flip phone fan here. I do not understand the need to have a "smart" phone, unless of course you like being the prisoner of your device.


Posted by:

Jeff
17 Sep 2025

After destroying an old Nokia Chiclet phone in an unfortunate accident underneath a pickup truck tire, I sought out a military grade Casio G'Zone flip phone. Served me well for years. Friends would tease me about not having a smartphone and I would drop my phone from about 5 ft in the air to a hard floor and challenge them to do the same with their smart phone.

But at some point about 2015, it seemed to make sense to makes a leap. And in the last 10 years I've become a smartphone believer. So much of my daily online life can conveniently be done on the smartphone. Meaning I log less hours on a computer responding to email messages or doing internet searches. You used to have to try to remember you're burning questions until you got home to use your favorite search tool on you desktop or laptop. But now you can whip out your smartphone and get an answer within seconds


Posted by:

Beth
17 Sep 2025

We felt forced to get stronger home wifi & our first smart phone because many businesses, medical offices, hospitals & utilities require it for services (texting & app access - not computer access). Went to BestBuy, bought a 16e & had to get locked into a carrier. Spent HOURS over 3 days on phone with Verizon & with Apple but voice calls wouldn't work with wifi. Geek Squad literally "not taking calls" for help, so we drove 90 miles back to Best Buy to exchange it (per Verizon instructions): one employee challenged us but fortunately another overheard conversation & confirmed hearing that complaint from others. Manager took our phone to the back room, then magically it worked fine. Manager confronted our ignorance about smart phones & advised that they would not charge us for their work this time ONLY. Verizon offered a nice credit for all the hassles. We later learned that our local Verizon store is often very helpful (if one is able to wait) and that they offer no-interest time payments which then allows better service if problems occur. As we learn to use the smart phone, we still wish it wasn't "required" by so many businesses & services. So far, the extra costs for the phone, cellular service & stronger home wifi far outweigh the benefits of having it all.


Posted by:

Norman Rosen
17 Sep 2025

I have bought several refurbished phones from Amazon and have NEVER had a problem with them.


Posted by:

Ken H
17 Sep 2025

I always trade my iPhones in at AT&T. Probably not the cheapest option, but I know what I am getting and in my own research, AT&T had by far better coverage that the other telecoms despite what the polls may tell you. Verizon is possibly getting better, but when I first moved here in the woods, there were a lot of places where my neighbors' Verizon phones didn't work while my iPhone did and the same was true even when I was living in San Francisco. AT&T give pretty good trade-ins these days, up to $1000 last time I looked.


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