Did you know the average person clicks their smartphone 2,617 times per day? With that level of use, it matters more than ever to have a phone that fits you. So how do you find the perfect smartphone for you? Once upon a time, it meant heading to your local carrier store and picking between a handful of iPhone or Android models. However, there are just about as many ways to buy a smartphone as there are mobile networks, which means you have options. Gone are the days of being locked into whatever device your carrier happens to be promoting – welcome to the era of unlocked phones, competitive pricing, and far more flexibility to find the device that fits what you’re looking for.
The unlocked phone market has grown substantially over the years. According to NPD’s Unlocked Phone Demand Report, an estimated 28 million U.S. consumers owned an unlocked device at one point, representing around 12% of the market. That figure later climbed to over 50 million active unlocked smartphones on U.S. mobile networks, reflecting an 8% increase. Today, unlocked devices represent an ever-growing share of how Americans buy and use their phones.
If you’ve ever wondered what the difference between an unlocked phone and a locked phone actually is, we might just be able to help. Let’s get started on what it means to be locked or unlocked, the benefits of each, and where you can browse for one.
What Is a Locked vs Unlocked Phone?
First and foremost, an unlocked phone is not tied to a carrier – it means you have the option to use the phone with any carrier. Using an unlocked smartphone also gives you the option to choose from more models compared to what your local phone carriers may have in stock. The majority of unlocked phones use SIM cards, which means you can spend your time traveling abroad by swapping to an international SIM card – this gives you full access to switch carriers if you move on from the one you are currently with, usually with zero penalties.
The unlocked phone market has grown. According to NPD’s Unlocked Phone Demand Report, an estimated 28 million consumers owned an unlocked device in the U.S. at one point, accounting for 12% of the market. That figure later grew to an estimated 50.1 million active unlocked smartphones on U.S. mobile networks, representing an 8% increase. Today, Android dominates the unlocked market at 62%, compared to iOS at 35%. 51% of unlocked phones are purchased online, but 74% of locked phones are still purchased in stores or kiosks.
Due to the wider number of compatible carrier options, unlocked iPhones and Android devices tend to hold a higher resale value. Unlocked phone buyers are also more likely to switch carriers – 32% of unlocked buyers switch compared to just 25% of locked phone buyers, according to NPD Connected Intelligence. However, there are some drawbacks to an unlocked device: you might lose access to network features like HD voice or Wi-Fi calling, and your service plan might not guarantee that data or voice networks will perform as they would on a locked phone.
If you are interested in unlocking your phone, you may be eligible to do so once you have finished your payments and your contract or agreement has expired. U.S. carrier contracts are usually 24 to 36 months in length, so it’s worth confirming your agreement terms directly with your carrier before making any changes.
Benefits of Unlocked Phones
Having your phone unlocked gives you freedom when switching carriers and gives you more options in plans and device choice than you would get with a locked phone.
Since an unlocked phone is not tied to a particular service provider, it may cost more upfront. However, you can pair your phone with an inexpensive data or voice plan and end up paying less over time than you would with a locked device – especially given that U.S. carrier contracts usually run 24 to 36 months, locking you into a plan whether it fits you or not.
Are you always traveling abroad as an international student, business traveler, or digital nomad? If so, you might benefit from an unlocked phone. While traveling internationally, you can make your device ready for international travel and pay the same rate as locals in the country you are visiting instead of being stuck with an expensive international roaming plan from carriers like T-Mobile or Verizon. All you need is a local SIM card to keep your costs down while still enjoying reliable cell service.
Swapping SIM cards works with newer phones as well. As long as the card size is compatible, you can basically move your SIM into your new device and you’re ready to go. But you can also swap between different networks entirely, which makes it easy to find the provider that fits you best at any given time.
You can also take advantage of multiple carriers with an unlocked phone. For example, one wireless carrier might give you a great deal on domestic calls. But another has the best plan for receiving calls internationally – and with an unlocked device, you have the flexibility to choose either.
Unlocked phone buyers are more likely to switch carriers than their locked-phone counterparts. According to NPD Connected Intelligence, 32% of unlocked phone buyers switch carriers at the time of purchase, compared to just 25% of locked phone buyers – a sign that unlocked devices give consumers more negotiating power.
When you are ready to upgrade, an unlocked phone is also easier to resell. Since it works across multiple networks, it appeals to a much wider pool of buyers. So if you like upgrading frequently, an unlocked device can help offset the cost of your next purchase.
The unlocked smartphone market has grown significantly. According to NPD’s Unlocked Phone Demand Report, an estimated 50 million active unlocked smartphones are now in use on U.S. mobile networks, up from around 28 million just a few years prior. Android dominates this segment at 62%, compared to iOS at 35%, though unlocked iPhones remain popular with travelers and frequent switchers alike.
What Is a Locked Phone?
Locked phones, usually called carrier phones, can only be used with one particular carrier. You can buy locked phones directly from different service providers, like T-Mobile, AT&T or Verizon, or through third parties that work with these service providers. Locked cell phones have software that prevents you from using them with a different carrier than the original one you bought it from. They are locked to that service provider.
Carrier contracts in the U.S. usually run 24 to 36 months, during which time your device remains locked to that network. Locked phones are predominantly purchased in stores or kiosks, with around 74% of buyers picking that path. Of those who buy a new locked smartphone, roughly 75% stick with their existing carrier. But 25% use the buy as an opportunity to switch providers.
The unlocked phone market has grown over the years, with an estimated 50.1 million active unlocked smartphones on U.S. mobile networks as of mid-2020, according to NPD’s Unlocked Phone Demand Report – an 8% increase from a prior figure of 28 million. Unlike locked devices, unlocked phones give users the freedom to switch carriers at will, which is loved by those who want more flexibility or frequently travel internationally.
Benefits of Locked Phones
Locked phones have several benefits which make them a contender when choosing your next device. One of the main benefits of a locked smartphone is that your service provider will give you the option to pay off your phone with a payment plan. U.S. carrier contracts are usually 24 to 36 months in length, which means you can spread the cost of your device over time without needing to come up with a large lump sum first.
Next to a payment plan, wireless carriers usually have discounts or deals to draw in new customers and keep their existing ones happy. Backed up by purchasing behavior, 74% of locked phones are purchased in stores or kiosks, where carrier representatives can talk about the latest promotions and bundle deals — this combination can put extra cash in your pocket!
Access to customer service is also a benefit when buying through your carrier. If you have questions about your mobile device or it isn’t working, you’ll know where to go to get help. It’s also worth mentioning that 75% of consumers who buy a locked smartphone stay with their carrier, suggesting that they find their carrier experience satisfactory enough to stick around.
What’s the Difference Between Locked and Unlocked Phones?
Locked phones are available through service providers or third-party businesses that work with these service providers. When you buy a locked phone, the carrier binds it to your wireless account with software that prevents you from using the device with another carrier. This arrangement usually comes with a long-term contract of 24 to 36 months, and around 74% of locked phones are purchased in stores or kiosks.
You may be able to unlock a locked phone through your carrier once requirements are met, like completing your contract term or paying off the device in full. Of consumers who buy new locked smartphones, roughly 75% stick with their existing carrier. But 25% switch to a new one.
Unlocked phones, on the other hand, are not tied to any carrier and can be used with a number of networks. They are sold by manufacturers and retailers that are not directly connected to service providers, and you can even buy unlocked phones from other countries. About 51% of unlocked phones are purchased online. Because they don’t have as many carrier-imposed restrictions, unlocked phones give you the freedom to switch carriers whenever you choose – and data backs this up, with 32% of unlocked phone buyers switching carriers compared to just 25% of locked phone buyers.
The unlocked phone market has grown. An estimated 50 million or more active unlocked smartphones are now in use across U.S. mobile networks. The unlocked market is dominated by Android devices at 62%, with iOS accounting for around 35% of the unlocked segment, and refurbished devices making up a growing share of that mix.
If My Phone Is Unlocked, Can I Use It With Any Carrier?
Not necessarily – there are some limits to which carriers you can use with an unlocked phone, as it largely depends on network compatibility. Most modern flagship smartphones – like Google Pixel devices and recent iPhones, are designed to work across all U.S. carriers. However, some unlocked phones – especially older or budget models – may only support GSM networks like AT&T and T-Mobile and won’t be compatible with Verizon or other CDMA-based or different band configurations.
The safest strategy is to check the carrier’s website. Most providers have compatibility checkers where you can enter your phone’s IMEI number to confirm if it will work on their network.
It’s also worth mentioning that unlocked phones give you more flexibility when switching carriers. According to NPD Connected Intelligence, 32% of unlocked phone buyers switch carriers after their purchase, compared to only 25% of locked phone buyers – which is one of the biggest benefits of going unlocked.
If you’re not sure if your device will work with a new carrier, contacting that carrier’s support team directly is always a reliable option before making any changes to your plan.
How to Know If an Unlocked or Locked Phone Is Right for You
After learning about the benefits of a locked and unlocked phone, you could be thinking about what other things you might consider when picking which one is best.
Finances
If you have a tighter budget, a locked phone, like a locked iPhone, could be your best bet. Most carriers will give you a payment plan so you can pay for your locked phone. If you buy a phone from a wireless network, you won’t have to buy it outright, which is helpful because phones can cost more than $1,000. You will be asked to make a down payment and then pay off the rest of the phone over time, usually over a 24 to 36 month contract – this down payment can vary between providers depending on what phone you want.
If you make payments to your network provider on time and have good credit, you might earn discounts and save even more money. These discounts could include a buy-one-get-one-free deal or a percentage discount. Free gifts could even be a part of your purchase with a carrier. You can sometimes buy insurance plans from your carrier, which may be cheaper than plans offered by third parties.
If you have enough money to buy a phone outright, you might spend less money than if you pay for the phone over time. Network providers usually will charge you the list price for a smartphone. But they can hide extra fees in monthly payments.
Travel
If you travel quite a bit, an unlocked phone may give you the greatest benefits. Even if you’ve paid off your locked phone, it may be a challenge to unlock it. You may be in a rush to move. But your carrier may want you to go through a few processes before they unlock your phone. These processes are especially inconvenient if you are planning to move to a foreign country.
Carriers
When you buy a locked phone, you can only use it with the original network provider. You may be able to switch once you pay off your phone and unlock it, though. Research from NPD Connected Intelligence shows that 75% of consumers buying new locked smartphones stay with their original carrier. By contrast, unlocked phone buyers are more likely to shop around – 68% stay with their latest carrier while 32% switch.
Even though it’s possible to find a wireless carrier that fits you well, if you want the freedom to switch carriers at any time, an unlocked phone could be the better choice. You don’t even have to have a provider with an unlocked phone if you want to use your phone as a Wi-Fi-only device.
Phone Selections
If you use an unlocked phone, then you’ll have more phone options, because carriers usually sell from a limited selection of cell phones. A benefit to an unlocked phone is that you can choose from the hundreds of mobile devices offered around the world – like devices offered outside your own country – instead of being limited to whatever phones your local carrier happens to be selling at that moment.
This nearly endless pool of options lets you find the perfect phone for you at the best price possible. With a carrier-locked device, you could be stuck paying the list price for a cell phone that’s not even what you wanted, basically because that was your only option. With unlocked devices, that isn’t a problem – it’s also worth mentioning that the unlocked phone market is dominated by Android devices, which make up approximately 62% of unlocked phones, compared to iOS at 35%, and it gives Android users an especially large number of options.
If you like shopping online, an unlocked phone may also be more convenient – approximately 51% of unlocked phones are purchased online, compared to 74% of locked phones being purchased in stores or kiosks.
Software and Apps
If you’re a fan of fast software updates, then you’ll be pleased to know that unlocked phones get updates straight from the manufacturer, which tends to be quicker than receiving them through your carrier. Overall, unlocked devices are usually more up to date than locked phones.
If you like the extra apps that your network provides you, consider a locked phone. If you don’t like apps taking up storage space on your phone, an unlocked phone will have fewer apps that carriers have pre-installed.
Browse Gazelle’s Locked and Unlocked Phones
Locked phones are an option if you can’t pay for your phone in full or if you’re interested in a discount from a carrier. An unlocked phone could be a better fit for you if you travel quite a bit or want to browse carriers before committing to one.
Whether you choose a locked or an unlocked phone, check out Gazelle. We have locked and unlocked phones – like iPhones, Google phones and Samsung Galaxy phones. You’re sure to find the smartphone that works best for you and your style.
The unlocked phone market has grown. According to NPD’s Unlocked Phone Demand Report, an estimated 28 million consumers owned an unlocked device in the U.S. That figure has since grown to over 50 million active unlocked smartphones on U.S. mobile networks. That growth makes sense – 51% of unlocked phones are purchased online, which makes it easier than ever to shop for the right device without stepping foot in a store.
If you’re currently on a carrier contract, keep in mind that U.S. carrier agreements usually run 24 to 36 months. Buying an unlocked phone gives you the flexibility to switch carriers at any time – and data shows that unlocked phone buyers are more likely to do that, with 32% switching carriers compared to just 25% of locked phone buyers.
You can expect the following when buying from us:
-
Our Gazelle certified guarantee
-
A 30-day return policy
-
Honest pricing
-
A protected website experience
-
Quick shipping checkout process
If you want to know about our products and what we do at Gazelle, get in touch with us at 1-800-429-3553.