Retail locations that sell everything from cut-rate electronics to groceries are now offering promotions on smartphones that are ridiculously cheap. Just the other week, Walmart was selling an iPhone for less than a dollar. Consumers need to be aware however, of how such purchases complicate device service, warranties and overall terms. While a cheap smartphone might seem like a good deal, it can end up being more of a rip-off than buying from the carrier. Read on to learn why buying a smartphone from a retailer could end up really costing you.

The Dangers of Buying a “Cheap” Smartphone

Retailers are simply not proficient in the technical aspects of smartphone technology, so buying a phone from one of these locations has many downsides. When you buy a device from the carrier, you have access to knowledgeable salespeople who will give you individual attention, and can answer any question about how the device works, or which phone would be best for you. The following are some additional problems with buying from a retailer instead of a carrier:
–        Lack of billing-issues support
–        Vague protection plans
–        Lack of advice and recommendations for devices
–        Can no longer participate in “grandfathered” pricing
–        No exchange-warranty for damaged devices; and
–        Lack of technical support
 

Customer Complaints

While retailers like Walmart, Costco, and Target might advertise amazing deals on smartphones, customers have found that these offers have expensive and inflexible terms. Some typical customer complaints include additional contract terms specific to retailer, inability to swap-devices or deactivate a phone for a minimum of 6 months, non-instant rebates and strict cancellation terms. On the other hand, wireless carriers are currently trying to make their services as flexible and commitment-free as possible. They provide customers with options for cancelling their service, switching devices, and many more choices than a simple retailer can offer.
 

Cheap Device = Expensive Contract

It’s very rare that any deal is actually as good as it sounds, and this is especially true when it comes to smartphone deals. Getting a cheap, or even free device is never what it seems. Costs are always subsidized into contract terms, and the length of service that must be committed to in order to get the phone for a particular price is typically 2-years. Calculating the simple math of $75 per month over two years comes out to $1800, and that’s only for one-line of service.
 

Upgrade Challenges

Upgrades are a particularly grey area when it comes to snagging a great promotion on new devices. Upgrades essentially mean extending a service contract in lieu of obtaining a low price on the latest and greatest phone model. Upgrades processed through retailers usually result in forfeiting special employer-percentage discounts on monthly service, carrier warranties and having to enter into an agreement directly with the retailer that modifies standard upgrade terms and service conditions.
 
When it comes to purchasing a smartphone, consumers need to be careful when it comes to a great “deal.” Making a cost-effective decision doesn’t mean finding the cheapest phone to begin with—it includes the long term payment plan and any additional costs associated with a phone service. The information for this article was provided by the smartphone professionals of Apple Shark, who provide an iPhone trade in program for customers.