The Pros And Cons Of Buying A New Phone From Costco

Costco members know that an initial membership investment can yield dividends in savings and access, offering both the traditional bulk discounts of a membership club and exclusive savings on top products. Their customer service is also lauded for its transparency and reliability, particularly when buying expensive products. While you may already be familiar with Costco's consumer tech savings, did you know that you can buy your new phone at Costco?

If you've spent any time browsing in Costco, you've likely been approached by an enthusiastic sales associate at a wireless kiosk somewhere. While this can admittedly be off-putting, it might benefit you to listen to the pitch and compare what you've currently got active for a wireless plan. 

Costco does offer the latest devices through these plans, plus you can often find Costco-exclusive prices on the devices themselves, as well as line and activation fees. There are also typically Costco shopping cards available, typically for adding lines, devices, initiating plans, and more.

As of this writing, Costco has official partnerships with AT&T and T-Mobile, though they previously had options for Verizon users as well. This means that you can upgrade, adjust, or sign up for a plan to either of these services right in a Costco store; similarly to how you'd upgrade in a direct retailer store for each carrier. So why would you upgrade at Costco? 

For starters, Costco often offers gift cards when you open up a new plan, or even when you upgrade. For instance, right now T-Mobile is giving out up to $200 in a Costco shopping card and $250 on a prepaid Visa Card simply for switching to T-Mobile. AT&T's current promo is a $100 Costco card, plus a discount on your AT&T plan. It's important to check the Costco phone programs when you're ready to buy, however, because these terms can change a lot from month to month. Then there's the cost of the phone itself. Like at your wireless carrier's store directly, the Costco kiosks are always pitching interesting deals on new phones. 

On T-Mobile, for instance, they're currently running a promo where you get four iPhone 17 smartphones completely free if you bring four lines over from your previous plan. There's also the same deal for the Galaxy S25. You also get an additional $75 when activating a line, and $25 more if you add a watch or tablet to the mix. AT&T's promo requires you to bring an existing iPhone trade-in to upgrade, but then you get the iPhone 17 Pro for free. These prices could be better than what's on offer at your carrier, so double-check the current promotions there, and consider checking out one of Costco's options.

As with most cell phone promotions, there's fine print to consider when going the Costco route for your new phone. Firstly, all of those Costco shopping card promos tend to come with a waiting period. Typically you have to wait a few months for them to hit your account, which means you won't get instant savings that day, and you'll be incentivized to stay on the plan longer. 

This is true of many of the phone discounts as well, often requiring you to take the "free phone" savings over time through statement credits spread out over a couple years. This isn't really different from how carriers handle their promos directly, so if the Costco offer is more attractive, then it might still be worth it. Then there are the contractual components. Unlike smart TVs, tablets, or other electronics, you typically can't simply buy an unlocked phone at Costco, as you'll need to associate the phone with a plan administered through Costco. 

While this does give you access to possibly better deals than elsewhere, it does lock you down. You'll also typically need to work directly with a sales member at a kiosk, which can be a mixed bag. Some members have reported very pleasant experiences where the rep explained the clear benefits for Costco, and were honest about savings. Others felt these people were pushy and unclear on the benefits. All in all, if you are comfortable with some of the red tape associated with Costco, there are plenty of savings and discounts to be had.