Buy an iPhone Without a Contract

This article teaches you how to choose the right iPhone for you without having to commit to a contract with a carrier. Purchasing an iPhone free of a contract affords you more ownership over the phone as well as more flexibility in how (and where) you use it.

Steps

Deciding on Your Phone's Criteria

1. Establish a budget. Knowing how much you're willing to spend on an iPhone will narrow your options from the beginning.
   • For example: setting your budget at $600 will eliminate the option of purchasing the pricey iPhone 7 Plus at retail price from your options.
   • If you intend to buy a phone on using Apple's payment plan, you'll want to set a monthly spending budget instead of a total spending budget. To do this, add $129 (the cost of Apple Care) to your phone's full price and divide the total by 24 (the number of months in a two-year plan).
2. Decide on the type of phone you'd like. As of January 2017, you can purchase a brand-new iPhone SE, iPhone 6S/6S Plus, and iPhone 7/7 Plus directly from the Apple store. You can even compare their specifications in order to get a general idea of the phone that offers the best fit for you.
   • Apple also sells new versions of older phones, such as the iPhone 5/5S and the iPhone 6/6 Plus, through third-party retailers like Amazon and Best Buy.
   • Some phones, such as the iPhone 4, are too old to support the newer versions of iOS (for example, the iPhone 4 only supports up to iOS 7.1.2).
3. Understand the difference between "unlocked" and "no-contract" phones. When a phone is "locked", it means you can't use it with another carrier's network without your current carrier's permission. Purchasing a phone with a carrier affiliation doesn't mean you're purchasing a contract, however, and purchasing an unlocked phone doesn't guarantee a better deal:
   • An unlocked phone has no affiliation with a carrier, meaning you can change carriers as you go. This is beneficial if you move frequently, travel internationally, or simply like knowing that your phone is 100 percent yours, but it can be more expensive than a no-contract phone.
   • A no-contract phone is locked to a specific carrier (e.g., AT&T), but--as suggested by the name--there is no contract for use. This means that you pay only for the data that you use on a monthly basis.
   • Depending on the carrier you choose for a no-contract phone, your pay-as-you-go rate and terms will vary.
   • You can unlock a carrier-locked phone if you meet your carrier's unlocking criteria. Usually, you have to have paid off a certain amount of your phone's contract, and you'll probably have to pay a fee on top of that.
4. Consider purchasing a pre-owned phone. Some sites, such as Best Buy, sell "certified pre-owned" devices in both carrier-locked and unlocked formats. These are typically cheaper than retail prices for brand-new models, though you may have to settle for an older model of phone than you initially wanted.
5. Decide on a carrier. Unless you decide to get a SIM-unlocked phone, you'll need to buy a phone licensed by AT&T, Sprint, T-Mobile, or Verizon. Purchasing a carrier-licensed phone does not enroll you in a contract--it simply determines the cellular network you'll be using.
   • Consider the popular coverage in your area. If you live in an AT&T hotspot, you might want to opt for an AT&T phone.
   • If you travel a lot, you may want to use a Verizon phone due to optimal coverage.
6. Review the different cellular frequencies. Your iPhone will use one of two cellular data frequencies: CDMA or GSM. Verizon and Sprint phones use CDMA, while AT&T and T-Mobile phones use GSM. Even if you're buying an unlocked iPhone, there are several things to consider since you'll eventually use one network or the other:
   • Whether or not you travel internationally. GSM offers better international coverage than CDMA. GSM phones also permit you to switch out your device's physical SIM card, meaning you can switch carriers as quickly as you can swap SIM cards if your phone is unlocked.
   • Your preferred carrier. If you have a carrier preference to which you're sticking, you'll have to settle for that carrier's cellular frequency.
   • Whether or not you use other networks. You can buy unlocked versions of carrier-licensed phones (e.g., a Verizon phone), but you'll only be able to use that phone with another phone using the same cellular frequency (in Verizon's case--CDMA--the only additional network you could use is Sprint).
   • Also note that GSM is more widely-used throughout the world than is CDMA.
7. Buy your phone from the Apple store. Purchasing an iPhone from a carrier store means you'll most likely end up with a carrier-locked phone and a contract. The Apple store allows you to purchase a no-contract (or completely unlocked) phone.

Buying a Phone from the Apple Store

1. Open the Apple website. You can purchase a brand-new iPhone from the Apple store and have it delivered to your address.
   • iPhone stock rotates whenever a new iPhone comes out, so your preferred model of iPhone might not be available.
2. Select the iPhone tab. You can find this at the top of the page.
3. Select your preferred model. This will take you to that phone's customization page. The current iPhone models for sale at the top of this page include the following:
   • iPhone SE
   • iPhone 6S
   • iPhone 6S Plus
   • iPhone 7
   • iPhone 7 Plus
   • If you choose the iPhone 7 or 7 Plus, you'll need to click Buy in the top right corner of the page to proceed to the customization menu.
4. Select Select next to the screen size you prefer. On both the iPhone 6S and iPhone 7 lines, your options are 4.7-inch screens or 5.5-inch screens.
   • Since the iPhone SE only has one screen size, it won't have this option.
5. Select a carrier. You'll see options for T-Mobile, AT&T, Verizon, and Sprint on the left side of the screen. Note that selecting a carrier only determines the type of data frequency your phone uses--you aren't buying a contract.
   • If you're buying an unlocked phone, select SIM-free on the right side of the screen.
6. Customize your phone. You can choose the following aspects of your phone:
   • The case color (varies per phone model)
   • The internal storage amount (varies per phone model)
7. Select a payment method. If you're purchasing an unlocked phone, you'll only have the option of a one-time payment through Apple. Your options for payment include the following:
   • Through your carrier - Monthly payments made out to the carrier of your choice. This option mandates using a contract.
   • Through Apple - Make a one-time payment.
8. Click Add to Bag. This is at the bottom of the page.
   • You can also review your phone's aspects (model, color, memory) here.
9. Click Review Bag to get to the checkout screen. This button is at the top of the webpage.
10. Click the blue Check Out button if you're ready. After doing this, you'll need to sign into the Apple store with your Apple ID and password (or create a sign-in profile if you haven't already) and follow the on-screen steps for using a card, adding your address, and so on. When you're done, your new, contract-free iPhone will be on its way.

Tips

• With the Apple Upgrade Program, you can upgrade to a new phone after paying half of your current phone's value at no additional cost.
• The Apple Upgrade Program requires you to buy a carrier-locked iPhone.

Warnings

• Beware of purchasing a phone from a community-based site such as Craigslist or eBay. If you're going to purchase from a third-party site, opt for Amazon or something similar.

Sources and Citations

See also

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• Make Your Mobile Phone Number Appear As a Private Number
• Block a Phone Number
• Get Rid of an Old Cell Phone
• Find Out if Your Phone Is Unlocked
• Change Font on Mobile Phone
• Tether Cellphone Internet to a Laptop

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• Carrier Unlock an iPhone