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Cell phone buying guide

Updated March 27, 2012 7:00 AM PDT

Buy and upgrade your cell phone

  1. Find a phone you like. Keeping in mind the points in the previous section, find a handset that offers the best combination of style, features, and performance for you. You might also consider a Bluetooth headset, but make sure it's specifically designed for your phone of choice.

  2. Check with your carrier. Carrier stores and Web sites are the easiest place to buy a new phone, as you can get the new handset activated, sign up for service, and make changes to your account all in one place. If you're a new customer, your contract agreement will entitle you to rebates and discounts for phones. Find out which ones they are, as they can offer significant savings. Additional rebates might also be available for online purchases.

    If you're a current customer, ask your provider if any deals are available if you get a new model. This is essential, as carriers will limit how often you can get rebates on a new phone. Remember, however, that some carriers will charge an upgrade fee even if you're eligible for a rebate. Also, while you don't have to buy a phone that comes with rebates (doing so will mean a new contract), it can be more economical to do so.

  3. Check third-party retailers. You also can buy phones from general electronics stores such as RadioShack that are not affiliated with any carriers. Going this route can offer a couple of advantages. Not only may prices be different, but you might find alternative models not directly sold by a carrier. Just make sure your carrier will support the phone you want. Also, while third-party retail stores aren't owned by a carrier, they can partner with providers to offer the activations services and rebates.

    If you have a GSM carrier, you also might consider buying an unlocked phone; these are available only from third-party retailers. Unlocked phones differ from locked phones in that they have no settings that tie them to one operator. As such, you can change carriers simply by changing the phone's SIM card, which can be an attractive option for international travelers. Just keep in mind that if you buy an unlocked phone, you won't be eligible for any carrier-sponsored rebates.


  4. Do you need a smartphone? Smartphones combine cell phone and PDA functions in one unit. They're most appropriate if you require access to your work e-mail and calendar when on the go. Also, some smartphones allow you to access and edit Word and Excel documents. Smartphones will also vary widely by design. While some models use a stylus and touch screen, others offer full QWERTY keyboards.

    Though smartphones are considerably larger and much more expensive than standard handsets, often costing upward of $600, they eliminate the need for two separate devices. Smartphones are available for Symbian, RIM BlackBerry, Apple iOS, Google Android, and Windows Phone 7 operating systems, each of which has unique characteristics. Be aware that you'll need to purchase a separate data plan, which varies by carrier.

  5. Read the fine print. Some things to keep in mind before you commit:
    • You can search auction sites such as eBay for good deals. Use caution when going this route, however. If there's an outstanding balance tied to the number, the carrier won't activate the phone to work on a new account. Also, if you receive a broken device, make sure you can return it.
    • If you're prone to losing your phone, consider an extended warranty in case your handset is lost, stolen, or damaged. Some carriers also offer roadside assistance services in case you need help while driving.
    • Finally, remember that during the grace period, you can return a phone for a full refund if you decide you don't like it. Check with your provider for exact details.
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