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The catch with those 'free' Apple iPhone and Samsung Galaxy offers

Carriers claim to offer the newest phones for $0
Is Apple's iPhone 12 really worth $800?
Posted at 11:30 AM, Feb 22, 2022
and last updated 2022-02-22 11:30:53-05

CINICNNATI — You know spring is almost here when cell carriers start announcing free phone offers.

The ads are everywhere right now for Apple's iPhone 13, and the new Samsung Galaxy s22 - some claiming you can get the hottest new phone for "free" or for "$0."

But how can a carrier give away an $800 phone for nothing? Of course, there's a catch.

The tech site ZDNet investigated and said these offers often come with extra-long contracts and hidden fees.

What to expect if you sign up

In many cases, they say:

  • You need to trade in a phone in good shape that still has value, meaning not an old iPhone 5, or any 3G phone (AT&T is ending 3G now, and Verizon plans to drop it later this summer).
  • You must agree to an unlimited data package, which may be more than what you need.
  • You must sign up for a 36-month installment plan, which is a 3-year locked-in contract - longer than the old 2-year contracts.
  • Expect to pay an activation fee of $30 to $50 to set up that new phone, plus taxes, and possibly some other fees.

But from the "doesn't that stink" file: Why - in many cases - do you get a bill for a supposedly free phone?

ZDNet said most carriers will charge around $25 a month for that phone, then issue you a $25 credit as long as you remain on the plan.

The catch is if you make any changes

If you want to change your plan or get a new phone before the 3 years are up, those credits stop and you have to pay the remaining price on the phone.

Remember that you are agreeing to a 3-year contract -- not 2 years like in the old days. So you need to make sure you are comfortable with using the same phone, with no changes, over the next 3 years.

If so, these deals can be worthwhile.

As always, don't waste your money.

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Don't Waste Your Money

8:47 PM, Oct 17, 2018

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