iPhone Switch Deals: Finding the Best Price

The new iPhone 17 debuted in early September, and it has reportedly been selling well. However, with the base price starting at $799, it’s a steep investment for many when many can’t afford a $1,000 emergency. With a quarter of Americans taking on debt for new tech, there are ways to be cost-effective while having new tech to complement your daily life.

There are two core ways to buy a cell phone and get cell phone service: the carrier deal or the smart switch. The carrier deal can be more convenient, but the smart switch can potentially save you hundreds. 

WorkMoney has put together two common pathways to navigate your cell phone purchase and cell phone service, with a full cost breakdown.

Path 1: The Carrier Deal

The path that many people take is purchasing their cell phone and a monthly plan through a legacy carrier like AT&T or Verizon. It’s a convenient path, as you can also trade in your old phone, and potentially finance your phone through the carrier to pay it off over two or three years.

In addition, you can potentially get perks like free streaming services or bundle packages for home internet and more.

However, while your phone is on its installment plan, you don’t technically own your phone. If you become delinquent on your bill, AT&T will remain the carrier, also known as the phone being locked. While the phone payment is tied to your monthly bill, it's a separate contract. If the hardware bill isn’t paid, the carrier can accelerate the payments, making the entire phone bill due at once. Even worse, the phone could be “blacklisted”, meaning that it can’t be reactivated with any carrier.

While an installment plan is convenient, as it acts like an interest-free loan, it’s important to realize you don’t own the phone. Similar to an auto loan, you don’t own the car fully until it's paid off. 

This package of buying the cell phone and having the cell phone service in one location is convenient, but comes with a high price tag. The average cell phone bill is $141, according to J.D. Power.

By taking the smart switch path, you can drastically reduce this bill. 

Path 2: The Smart Switch

This is different than the more widely known path above, but it can save you big on your phone cost and monthly bill.

First, you want to buy an unlocked iPhone. Unlocked means that the phone is not tied to any specific carrier. You can find unlocked iPhones from trusted sellers like Amazon, Walmart, and Apple directly. If you want to save even more, instead of opting for the brand new iPhone 17, go for an iPhone 16, or even one that is refurbished.

At the time of writing, you can buy a refurbished unlocked iPhone 15 for $619.

Next, you will want to pair it with a low-cost carrier like Mint Mobile or Ultra Mobile. These services are called Mobile Virtual Network Operators, or MVNO. These services lease network capacity from the large carriers like AT&T and Verizon, and pass on the savings to users.

By taking this path over the previous, you get several advantages, including:

• You own your phone outright from the start

• There are no contracts with MVNO services, giving you the flexibility to switch

• Saving a significant amount of money

Writer's note: I personally use Visible by Verizon and pay $240 for the entire year of cell phone service. That’s $20 per month, an 86% decrease from the average bill! And it's one less monthly bill I need to worry about.

Side-by-Side Savings Comparison

Let's take the two-year picture and compare each plan, with the assumption that you purchase the new iPhone 17, to see how much you could save. The prices for cell service are based on the average data above, and an approximate number for MVNO services.

That is a difference of $2,664, a savings of 64% if you choose Path #2. In both cases, your phone will likely be paid off, but Path #2 clearly gives you a much cheaper way to have the new iPhone 17.

What To Do If You Want To Switch

If you’re currently with a large carrier, but don’t need or want the newest iPhone, take a look at your current contract to see when you can switch carriers. I switched from a large carrier years ago, and have been pleased with using MVNO services.

If you need a new phone, consider looking at refurbished phones that aren’t the latest iPhone 17. You will be able to save a bit of money and still get a phone with plenty of life on it.