Carriers are offering tempting deals on the new iPhone 17, but that tempting carrier deal comes with a warning from Bloomberg's Apple expert, Mark Gurman. The promotions often lock you into long-term commitments and expensive plans, making that "free" phone anything but.
So, what's the catch with these iPhone deals?
With every new iPhone launch comes a wave of eye-catching promotions from carriers like Verizon, AT&T, and T-Mobile promising hundreds of dollars off, or even a "free" device. The setup is simple: you trade in an older phone to get some credit, and the carrier "tops you off" with monthly bill credits to cover the rest. But as Mark Gurman points out in his latest Power On newsletter, these deals are just a modern take on the old subsidy trap.
It's a system designed to look like a great deal upfront while burying the real cost in the fine print. Before you commit, you need to understand exactly what you're signing up for.
The Hidden Catches of Carrier Deals
Monthly Bill Credits: The discount isn't a lump sum. It's spread out in small credits over 24 or even 30 months.
No Switching Allowed: If you leave the carrier before the term is up, you lose all remaining credits and will likely owe the full remaining balance on the phone.
Locked Into Expensive Plans: To qualify, you almost always have to sign up for one of the carrier's priciest unlimited plans.
Upgrade Lock-In: Want the iPhone 18 next year? You'll have to fully pay off the iPhone 17 first, forfeiting any future bill credits you were promised.
Why this fine print matters to you
All is not exactly as it seems when it comes to carrier deals. | Image credit — Apple
It's a big of a mixed bag for consumers. These deals effectively kill your flexibility, locking you into a single carrier for up to three years. Your freedom to switch to a competitor who might offer better coverage or a cheaper monthly plan is gone.
This lack of freedom is the real price you pay. The carriers are banking on getting their money back, and then some, by forcing you onto their most expensive service plans for years. When you factor in the total cost of service over the 24- or 30-month term, you may find you're not saving any money at all compared to just buying the phone unlocked and choosing a more affordable plan.
Are you currently on a carrier deal or do you buy your phones unlocked?
I got my current phone through a carrier deal.
0%
I buy all my phones unlocked.
100%
Are these deals ever a good idea?
I always buy my phones unlocked, so for me personally, these deals are rarely worth it. I think the loss of freedom to switch carriers whenever I find it necessary is simply too high a price to pay. You should only consider one if you're absolutely certain you won't be switching carriers or upgrading your phone for the entire 30-month period, and you were already planning on paying for that carrier's most expensive premium plan anyway.
However, I understand the psychology behind this, and why many go with the carrier option. It's all about how much money you are spending up front, which is an important consideration, especially if you are on a budget. Whichever option you choose, just make sure you are reading the fine print so you'll know what you're getting yourself into. Sometimes all is not as it seems — at least not at first.
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Johanna 'Jojo the Techie' is a skilled mobile technology expert with over 15 years of hands-on experience, specializing in the Google ecosystem and Pixel devices. Known for her user-friendly approach, she leverages her vast tech support background to provide accessible and insightful coverage on latest technology trends. As a recognized thought leader and former member of #TeamPixel, Johanna ensures she stays at the forefront of Google services and products, making her a reliable source for all things Pixel and ChromeOS.
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