Unlocked phones vs carrier phones: What are the differences and benefits?

In the early days of smartphones, the easiest way to get one in the United States was simple: visit your carrier outlet of choice and buy whichever device the salesperson convinced you was best.

Nowadays, things aren’t so simple — and that’s a good thing. You’re no longer dependent on what your carrier sells because you can easily buy unlocked phones from all over the world. But what exactly are the differences between unlocked phones vs carrier phones? Good question.

We’re going to lay out all the information you need to know about the advantages and disadvantages of buying your next smartphone the classic way (through your carrier) or unlocked, which is quickly becoming the default option for many.

Follow along as we break it down: unlocked phones vs carrier phones!

Unlocked phones vs carrier phones: A primer

Before diving into the advantages and disadvantages, let’s cover the basic definitions.

A carrier phone — also known as a locked phone — is sold through a wireless carrier or a third-party partner (such as Best Buy). It’s either already attached to your wireless account at purchase or immediately attaches upon first setup.

Carrier phones are almost always locked exclusively to that provider. You can’t buy a phone through Verizon and immediately use it on AT&T. While you can remove this lock, certain requirements typically apply (more on that shortly).

Unlocked phones are often available through third-party retailers or sold directly by manufacturers. They may or may not come with a SIM card, but there’s no obligation to sign up for a specific service. You can switch carriers as often as you want.

Now that we’ve covered the basics, let’s dive into why you should—or shouldn’t—buy an unlocked or carrier-locked phone.

Carrier phones: Advantages

The primary advantage of carrier phones is financial assistance. Often, you won’t have to pay for the device outright, which is helpful given that flagship phones frequently exceed the $1,000 mark.

Instead, you’ll usually pay a portion upfront—like a down payment—and then cover the rest over time. This upfront deposit could range from zero to several hundred dollars, depending on the phone’s price and popularity. Promotions through bill credits can even provide basic flagship phones at little or no cost, making high-end devices like the S25 Ultra surprisingly affordable.

Unlocked phones can also have installment plans through retailers like Best Buy, but this isn’t always as straightforward as with carriers. Carrier customers with good credit and account standing may earn discounts, buy-one-get-one-free deals, or additional perks like cases and wireless earbuds.

Another benefit is streamlined support and service. If your phone has issues or defects, your carrier store is obliged to help. Carriers also typically offer their own insurance plans, which may be cheaper or more comprehensive than third-party or manufacturer offerings.

Finally, carrier phones are guaranteed to be configured specifically for your carrier’s network, ensuring optimal performance.

Carrier phones: Disadvantages

The main disadvantage is reduced flexibility — you can’t easily switch carriers. If you’re financing your phone, it’s not fully yours until paid off, potentially trapping you in an unfavorable contract.

Even after paying off a device, carriers sometimes complicate the unlocking process. Thankfully, this is becoming rarer, with most carriers automatically unlocking fully paid-off phones within a few months. Verizon, for example, unlocks phones within 90 days regardless of payment status.

Carrier phones might also cost more long-term. Carriers often charge the full list price, whereas unlocked models may be cheaper elsewhere. Installment payments can mask overall higher costs, especially for consumers not actively comparing prices.

Lastly, carriers typically have a limited selection of devices, excluding niche but excellent options like the Nothing Phone 2 and even the 3a.

Unlocked phones: Advantages

Unlocked phones are fully yours from the start, allowing complete freedom to switch carriers or even go entirely Wi-Fi-based.

You have access to a vastly wider selection of phones worldwide, significantly increasing your choices. Hunting for the perfect device at the best price is entirely feasible.

Unlocked phones also open opportunities to buy quality used phones, potentially saving hundreds of dollars. They typically receive software updates faster and more frequently, directly from manufacturers, without carrier interference.

Moreover, unlocked devices rarely have unwanted carrier-installed bloatware, and any that exists can typically be easily removed.

Unlocked phones: Disadvantages

The main disadvantage of buying unlocked is the requirement to usually pay the full price upfront unless you leverage third-party financing options. This can be intimidating given the steep prices of flagship devices, though some retailers and credit services offer installment plans.

Compatibility can also be a concern—phones imported from overseas might lack the necessary wireless bands for your carrier. Researching phone specs and carrier compatibility becomes essential.

Lastly, getting help or service for obscure unlocked phones could be tricky, as carrier representatives may be unfamiliar with less-common models. Manufacturer support or community forums might be your best options.

Unlocked phones vs carrier phones: The bottom line

Carrier-locked phones used to dominate the market. Today, buying unlocked is increasingly common and frequently considered the standard method.

If you’re tech-savvy and financially able, we recommend unlocked phones—the benefits significantly outweigh the drawbacks. However, if you’re tech-shy, prefer easier support, or find upfront payments daunting, carrier-locked might still be your best bet.

Some people prefer big carriers due to extended roaming agreements or employer-based discounts, making carrier promotions genuinely appealing.