There comes a point when you have to part ways with your trusty handset. Sure, your current phone has served you well, but now you’re ready to explore other options.
First, do you want the newest cutting-edge device on the market or a proven, gently used model?
If you insist on the latest phone loaded with all the premium features, here are some pointers to help you find the best value.
When to Buy a New Phone
Flagship phones today can cost close to $1,000, so purchasing a new smartphone is a significant expense.
According to the International Data Corporation, manufacturers shipped 386 million new smartphones globally in the final quarter of 2020. That number dipped from 2019 amid the pandemic, but the market is showing signs of recovery.
Apple and Samsung lead sales charts. Apple’s recent flagship at the time was the iPhone 12 while Samsung’s was the Galaxy S21. Numerous other brands produce phones, but the top two provide multiple models with varying capabilities.
The simplest way to obtain a new phone is through your carrier upgrade, though that doesn’t always yield the most economical option.
Knowing what you need and researching your choices can save you money. Manufacturers set suggested retail prices, but that doesn’t mean you must pay them — in fact, you shouldn’t automatically accept the sticker price.
Timing your buy matters. When a new model debuts, prices are usually at their peak. Exercising patience can be lucrative.
“The longer you wait to purchase the device, the more money you’ll be able to save,” said Carl Prouty, a tech expert with Abt Electronics and a YouTube personality. “(Companies) aim to extract as much as possible from early adopters and once those buyers are done, (sellers) have to appeal to those on the fence with price reductions.”
Holidays are also prime periods to hunt for phone bargains.
“Stores often run promotions, so watch for those deals if you want to save or stretch your dollars a bit,” Prouty advised.
Do You Really Need a New Phone?
Ask yourself: do you want a new phone or do you actually need one? Is there a must-have feature your current device lacks? Are you experiencing significant issues with your old handset? Identifying your motivation helps guide your shopping.
Once you decide a new phone is necessary, determine the features that matter most. Prouty recommended considering:
- Platform: Android or iOS (Apple). Sticking with a familiar system can simplify things, but it might restrict your model options and price points. Prouty mentioned switching from Android to iPhone to be able to join family FaceTime calls.
- Storage: Phones come with fixed internal storage and some offer expandable options. If you take many photos, record videos, or keep lots of music, storage capacity is important.
- Screen size: Some devices are larger, which is great for media and browsing but less handy for one-handed use or for those with smaller hands.
- Battery: Removable batteries are rare now. Verify that the battery life on your chosen phone can handle your typical usage.
- Performance: Look at the processor and general speed.
- Camera: Phone cameras keep improving. Consider how you use your camera to decide whether you need multiple lenses or if basic front/back switching suffices.
At present, 5G isn’t strictly essential, Prouty noted.
“I turned it off on my phone because without an unlimited plan you can burn through data quickly. You won’t find 5G everywhere yet, so it isn’t as practical now as it might be later when coverage increases.”
Once you know your priorities, you can target brands and models that match your needs.
If your phone usage is limited to calls, texts, email and the occasional photo, you likely don’t need a top-tier model and a budget-friendly handset could serve you well.
Opting for a previous-generation phone is another smart way to save. What was a flagship before the newest release usually remains an excellent device.
“Being flexible on the model is the first step. If you insist on the newest and pay a premium for it, that’s fine,” said Andrea Woroch, a consumer and money-saving expert. “But if you’ll accept last year’s or a prior model, you’ll find savings because demand drops and they don’t sell as quickly.”
Retailers sometimes offer “open-box” phones that can’t be sold as brand-new. These might be floor models or returns and should be inspected to ensure they work properly. They may lack packaging or accessories but can come with the same warranty as a new device.
Prouty noted that some sellers provide refurbished phones that had issues corrected; they typically carry warranties similar to new products. It’s important to confirm any previous data has been wiped from refurbished or open-box phones.
Perhaps you only need a “new-to-you” phone rather than a factory-fresh one. Many pre-owned devices still have plenty of life left.
Where to Shop for a New Phone
Once, most of us got discounted phones by signing multi-year contracts with carriers. Those agreements locked us into plans while we paid off the phone in installments. Ending the contract early was costly and phones were often carrier-specific.
Those days have shifted: carriers now typically allow you to bring your own device and SIM, so there are many more options available.
Start with your current carrier. Woroch pointed out carriers often provide incentives to keep existing customers by offering discounts tied to staying and signing new terms.
Carriers also present deals to entice customers to switch to their service.
If you sign a new contract or plan, read the terms carefully. Some offers apply only for a limited promotional period and require a commitment, after which your costs may rise.
Prouty warned that the deepest discounts can come with all-inclusive unlimited plans. While that may lower the phone’s apparent price, you might pay for services you don’t need, increasing your long-term costs.
Be aware that carrier-locked phones often include software and bloatware installed by the provider. If you prefer a clean device, consider an unlocked model, which can be pricier.
“When a carrier subsidizes part of the phone’s cost, you see a lower upfront price,” Prouty explained. “If you buy a phone unlocked, the carrier isn’t covering any of that cost, so the sticker price is higher.”
Manufacturers also sell phones directly on their websites, letting you choose carrier-locked or unlocked versions, and they frequently run promotions.
Big-box stores and warehouse clubs carry phones too, often with sales, rebates, or gift cards as incentives.
Prices can vary between online and in-store, so compare. Many retailers will match their online price if you ask.
Also check online marketplaces like Amazon and other e-retailers.
How to Get the Best Deal on a New Phone
After narrowing down what you want and where to shop, focus on securing the best possible offer.
When comparing phone prices and promotions, account for:
- Phone price.
- Trade-in value of your current device. Third-party buyers may pay more than retailers offering the new phone, though you might prefer to keep your old phone as a backup.
- Any rebates available.
- Percentage or flat-rate discounts.
- Sales tax.
Deals are often structured as gift cards or bonuses rather than a direct price reduction.
Retailers prefer this approach because it drives return visits, Woroch explained.
“It encourages you to come back and spend rather than giving a straight discount, and many people end up spending more than the card’s value,” she said.
Retailers profit fully if a gift card is lost, forgotten, or not spent in full, which is more beneficial for them than a simple discount.
While shopping, ask about special discounts — it never hurts to inquire if you qualify for anything, Woroch suggested.
“Many carriers give discounts to students, teachers, military personnel and sometimes seniors. Just have the necessary ID to verify your eligibility.”
If buying online, use shopping portals that offer perks when you click through them to shop.
“It’s a no-brainer. If you can earn an extra 1.5% or 5% cash back with little effort, why not take it?” Woroch said, noting that small cashback amounts add up on expensive purchases.
Also hunt for coupon codes.
“Search for the carrier name plus ‘coupon code’ to see if any offers surface,” she recommended. “Remember many coupons apply only to certain models, so being flexible on which phone you choose increases potential savings.”
If you locate a price you like, move quickly. Flash sales and short-term promos can disappear fast. Woroch advised patience if deals aren’t currently available.
“You’ll see sales come and go. If there’s nothing now, wait — another promotion won’t be far off.”
Finally, if you’re exploring low-cost acquisition options, also consider promotions and programs that sometimes include offers for a free smartphone from att when meeting specific requirements from carriers or retailers.
Riley Morgan is a freelance reporter based in Florida with more than 25 years of experience covering personal finance, health, travel and other topics.
