You can get a flip phone - or four - for cheap at Verizon Wireless… You can pick up an iPhone 3G at your local AT&T store (if they have them) for $199.99… You can even get a new Blackberry Bold for FREE at WalMart! But wait? These phones are higher tech, more able, and even more expensive to build than other phones and/or phones from the past, so how can they be so cheap or even given away?
So many people don’t understand how the cell phone industry works. “Why will my carrier try to charge me $600 for a phone that’s only worth $200 just because it’s not time to renew?” While this might be a seemingly common predicament, the main problem here is that you have things turned around. The phone is worth the Manufacturer’s Resale Price (in this case $600) whether you buy it at that value or get it for a fraction of the cost with the signing of a contract. The cell phone carrier drops the price drastically on their cell phones to encourage you to sign a contract with them. Often, cell phone carriers take a loss on the sale of the cell phone (they purchase the phone for more than they sell it to you for) with the knowledge that this loss will be recouped in usage fees and the monthly payments you’ve agreed to in your contract.
So now that we understand the vast variance between cell phone cost WITH a plan and WITHOUT a plan, what do we do with this knowledge?
- Well, first of all, protect your phone! Most cell phone carriers have certain times when you are allowed to renew, so if you break your phone before then, you’ll be paying the big bucks for a replacement. Keep that phone in a gel skin, case, or Otterbox. Keeping your phone safe protects your wallet, too!
- Second of all, consider buying insurance. If you (like me) are bad news bears for any cell phone you come across, paying a small one-time fee or a few dollars a month will probably be worth it. Keep in mind, however, there is usually a deductible for replacing or repairing your phone, and there is also usually a limit to how many times you can get a replacement.
- Third, if you’ve surpassed your insurance limits or destroyed your phone even through the case, take it to a technician. The tech will be able to assess the damage to your phone, and in most cases will be able to fix it for significantly less than it would cost to replace the phone. For an iPhone specalist www.iphonerepair.com has all the info you need to fix any generation iPhone or iPod you have. For the rest of you, www.gammoth.com takes care of all sorts of phones, and calling or emailing first will ensure the best and most efficient service from this stellar phone repair shop.
Keep that phone safe, and don’t be fearful of maintenance costs. While the repair of the phone you see above (a screen replacement for the older iPhone) costs more than $200, you’ll see much steeper costs and dangers (if you decide to purchase a used phone) to replace this phone sans contract. Take my word for it, you don’t want to involve yourself in the mess of buying a used phone or pay full price for a new one.
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