Are Phone & Watch Bundles Worth It?

Do phone and watch bundles really save you money? Carriers like Verizon and AT&T want you to think so, by advertising the latest devices for just a few extra dollars a month.

On the surface, it sounds like a bargain. But many people get tripped up by the fine print — especially the hidden costs that pile up over time. That’s where WorkMoney comes in. We cut through the marketing hype, do the math, and show you the real numbers.

We’ll explain what bundles actually include and point you to smarter alternatives that can keep more money in your pocket.

What Phone & Watch Bundles Actually Include

Carrier bundles can sound like a great deal. You get a new phone and smartwatch for just a few extra dollars a month. But when you look closer, those promotions come with strings attached, like hidden monthly fees or 3-year contracts. Here’s what you need to know.

The Basics of a Bundle

When carriers advertise “phone + watch” deals, they typically include the following three pieces:

• A new phone and watch promotion. AT&T and Verizon let you finance devices over 36 months at 0% APR (with credit). For example, Verizon lists smartwatches as low as $10/month for 36 months — but that only covers the watch itself.

• An extra line fee for the watch. To use the watch on its own for calls, texts, and data, you’ll need a separate line. AT&T charges about $10/month, while Verizon’s smartwatch line costs $15/month before discounts.

• A long-term contract. Both AT&T and Verizon now stretch device payments to 36 months. Cancel early, and you’ll still owe the remaining balance.

Why Carriers Push Them

Carriers push bundles because they generate more money and keep customers locked in.

• Unlimited plans required. To use a smartwatch like a phone, AT&T requires an unlimited plan. With Verizon, the watch only works on its own if it’s linked to a smartphone line through Number Share.

• Small discounts, bigger costs. Verizon advertises smartwatches for as low as $7.50/month with promotions. But you still pay the $15/month line fee, plus the unlimited plan, in addition to paying for the watch itself

GPS vs. Cellular Smartwatches – The Real Cost Difference

Not all smartwatches work the same way. The two main options are GPS-only and cellular. They may look similar on the surface, but the costs are very different. Let's look at how they work.

GPS-Only Smartwatches

• Work with your phone nearby. A GPS watch connects by Bluetooth or Wi-Fi and uses your phone for calls, texts, and data.

• No monthly fees. The only cost is the watch itself — for example, the Apple Watch SE GPS starts at $249.

• Budget-friendly. If you keep your phone close, you’ll get the same tracking, notifications, and apps without an extra bill every month.

Cellular Smartwatches

• Need their own line. They have built-in LTE, which allows these watches to work on their own — but only if you pay a separate line fee (around $10–$15/month).

• Ongoing costs. Over 36 months, that adds $360–$540, not including the watch price or your unlimited phone plan.

• Not essential for most people. Since most folks keep their phones handy, a GPS model is usually enough. Cellular is more about convenience than need.

Some parents may want a cellular watch so their kids can make calls or send texts without a phone. But that still requires a separate number and a monthly line fee, which raises costs. A GPS watch linked to the parents’ phone (or a kid tracker) is often a more budget-friendly option.

The Math – Bundle vs. Buy Separately

When you bundle through a carrier, the costs aren’t always clear. You’re not just paying installments on the device — there’s also a recurring line fee for the watch, plus the required mobile data plan. So, over the course of three years, all those charges quickly add up.

Why Mint Mobile?

We included Mint Mobile in this comparison because it’s one of the most affordable prepaid carriers available, offering plans that start at $15 per month. It’s an easy way to see how much you can save by choosing a prepaid plan instead of a traditional carrier bundle.

Total 36-Month Cost of a Bundle

Here’s a sample breakdown that shows how the total cost stacks up when you bundle through a carrier versus buying separately.

36-Month Cost Comparison: Carrier Bundles vs. Smart Path

Note: Mint Mobile’s plans are prepaid, meaning you pay upfront for service rather than monthly. Phones are also purchased upfront, though Mint offers 0% financing through Affirm on select devices. You can explore available options on Mint Mobile’s Devices page.

A big shocker for many is that the cost of a smartwatch on a carrier bundle actually comes in two separate charges:

• Installment payment (hardware cost): the monthly amount you’re financing just to own the watch.

• Line fee (service cost): the extra charge to connect the watch to the network so it can work on its own, separate from your phone.

When you add both together, a “$10 watch” isn’t really $10 after all. It’s $10 (device) + $10–$15 (line fee) every month, plus the required data plan. Over 36 months, that adds up to hundreds of dollars. Suddenly, that “deal” isn’t so cheap.

Companies often highlight the $10/month installment cost. But they rarely highlight the added line fee and the fact that it only applies with an eligible plan. Or, that you’re essentially paying for the watch twice.

Alternatives That Save You Money

Bundles aren’t your only option. In fact, there are many cheaper ways to get the phone and watch setup you want without locking yourself into years of extra fees. Below are two options to consider.

Low-Cost Phone Plans

One of the easiest ways to save is by switching to a discount carrier. Mint Mobile offers plans starting at just $15/month. Compare that to the $50+ a month you’ll pay on a major carrier bundle, and the savings over three years can be more than $1,000.

Federal Support Program

You may qualify for a federal program that can bring your costs down even further. The Lifeline program helps eligible households get affordable phone service. Check if you qualify here. These funds are a benefit you may have already earned and are designed to make sure families stay connected without going broke. 

Unlocked Phones and Discounts

Another way to keep costs low is by buying an unlocked phone and pairing it with a discount carrier plan. Unlocked phones aren’t tied to a single network, so you can shop around for the cheapest service. You can also switch carriers when a better deal comes along. Paired with a GPS-only watch, this can mean hundreds of dollars in savings compared to carrier bundles.

You can buy unlocked phones on Facebook Marketplace, Amazon, and other retailers.

How to Decide If a Bundle Works for You

Bundles can look tempting, but they don’t fit everyone’s budget or needs. Before agreeing to a 36-month contract, be sure that a bundle really makes sense for you. Use this quick checklist to weigh your options:

• Do you actually need a cellular smartwatch?

  • GPS-only works for most people and avoids the $10–$15 monthly fee.

• Are you okay with being locked into a 36-month plan?

  • If you leave early, you will owe the device balance.

• Would a prepaid or low-cost plan meet your needs?

  • Mint Mobile starts at $15/month and can save you hundreds.

• Are you better off buying devices unlocked and separately?

  • Unlocked phones let you switch carriers and find cheaper plans.

Final Thoughts

Bundles are rarely worth it. Most households save money by buying devices separately, pairing them with a GPS-only watch and a low-cost phone plan. Most websites often push flashy promos like “get a smartwatch for only $10!” but stop short of showing the full math. Few point out that GPS-only models skip the $10–$15 monthly line fee, or that unlocked devices plus discount carriers can slash your bill.

At WorkMoney, we do the math for you. Our goal is to give you real numbers and an honest answer — so you don’t get locked into costly deals that don’t make sense.