Why do unlocked phones cost more




















Full disclosure: I use an Android phone. One of the reasons I do is because I was able to get it with the plan and carrier that I wanted and wasn't tied down to a contract. Whether I'll switch to an iPhone now that the unlocked versions are available is an open question, but I suspect that my girlfriend -- an Apple fan for the last couple of decades -- is going to make the jump.

The cell phone business is a complicated one, with contract restrictions, subsidized and often free phones if you'll commit to a couple of years with the same carrier, and different voice and data speeds with Edge, 3G and 4G carrier technologies.

At least Apple has made things a little simpler -- or have they made it more complicated? They've given us new options and, while that may make things more confusing, it has to be a good thing. Sign up for our Newsletter! Mobile Newsletter banner close.

Mobile Newsletter chat close. Mobile Newsletter chat dots. The best way to explain this is by telling you what a locked phone is.

Locked phones have been blocked from working with other networks. Try putting a SIM card from another carrier in a locked phone, and you will get a message telling you this action is a no-go. On the contrary, an unlocked phone has no network restrictions.

This is why they offer to unlock devices after your contract has ended, you have paid the smartphone off, or you have spent some time using their network.

For more details: What is an unlocked phone? Unlocked phone users have no restrictions, contracts, or ties to any company. They can shop around with no restrictions. Whether they want T-Mobile deals, Verizon quality, or the lowest prices the market can offer , they are free to come and go from carrier to carrier as they please. There is a catch, though! Your phone needs to be compatible with the network more on that in the cons section. Dual-SIM unlocked phones make it possible to use two networks at once.

Maybe you travel often and want to have a SIM card from another country. This is all possible with a dual-SIM unlocked phone. Here: These are the best dual-SIM phones you can find. Carriers offer phones on monthly payments, which is very convenient, but makes your bills pricier. Device payments keep you in debt with the carrier and make it harder to leave the network if you ever chose to. Carriers are businesses and obviously want to earn as much money as possible.

Their smartphone prices are not always fair, and they are only ever cheaper if they can hook you into staying with them for a more extended time. Carriers often have deals that drive down their device prices, but they always want you to get these on device payments or take on a contract. This only means they will get the money back from you eventually, and then some. See the device above? Any sane non-rich person would think twice or three times before forking out nearly two grand for a phone.

Buying unlocked will not only get you lower prices on devices, but it will also help you avoid overspending when not considering the total cost of a phone. Very few people take full advantage of what high-end phones have to offer, but you see people using them every day.

Here's all you need to know about the devices, including five reasons why you should choose an unlocked phone for your next smartphone purchase. Simply put, an unlocked phone doesn't carry software limiting it to a single mobile carrier.

This means that users are able to switch carriers or SIM cards on their smartphone without the device blocking access. A locked phone, on the other hand, only works with the network of the carrier that you bought the device from. Meanwhile, a locked Verizon phone will only work with the Verizon network. The phone will block access to other carrier plans, even if you insert a different SIM card.

If you want to use your locked phone with another carrier, you need to remove this software. It's not as simple as a factory reset of the device. Even rooting your phone isn't necessarily enough. Unlocked phones either never had this software installed in the first place or the software has been removed. When it comes to compatibility, unlocked phones are not only CDMA or GSM-specificyou can get unlocked phones that are compatible with either or both of these standards. The central defining feature of unlocked phones is their ability to be used across different networks without carrier-imposed limitations.

The restrictions imposed by locked phones mean that many people prefer unlocked devices instead. There are a variety of benefits to choosing an unlocked device, from increasing consumer choice to providing travel convenience. Buying an unlocked phone opens up a world of choice for consumers. Firstly, you aren't limited to the phones that your carrier is stocking or selling.

All of the carriers except T-Mobile charge you a one-time fee for activating a new phone or other device on their network. The good news is you don't have to. Just know that there are no financial advantages to buying a phone from a manufacturer or from a carrier -- locked or unlocked.

The real advantage to buying a phone from a carrier is the convenience of doing it all at once. While the advantages of an unlocked phone are that you have more say over which carrier you want to use as well as a wider selection of phone models.

Update, July 9, at a. Follow the Money : This is how digital cash is changing the way we save, shop and work. Be respectful, keep it civil and stay on topic. We delete comments that violate our policy , which we encourage you to read. Discussion threads can be closed at any time at our discretion. CNET editors pick the products and services we write about. When you buy through our links, we may get a commission. Patrick Holland.



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