Should You Buy Your Next Smartphone at Sam's Club?

Buying a smartphone at Sam's Club could be a good bargain if you're a new AT&T customer and want to save $250 on a 36-month installment plan for a new phone. The AT&T promotion can be even more significant if you have multiple people in your family and want to bring everyone to AT&T. 

But read the fine print first: The promotion doesn't work for every plan, and you won't see that $250 discount all at once. Let's take a look at Sam's Club's smartphone prices and AT&T promotions and see if buying a smartphone from the warehouse will be a good decision for your personal finances. 

How smartphone prices compare 

If you're going to buy a smartphone on an AT&T contract, you're basically limited to a few models of iPhone and Samsung. While you can also buy some Google and Motorola unlocked phones, you have significantly fewer choices and you won't be eligible for the AT&T promotions, arguably the top reason for buying a phone at Sam's Club at all. 

As far as prices go, Sam's Club's phones are on par with or slightly more expensive than Amazon. For instance, here's how its most recent Samsung and iPhone models compare: 

How AT&T promotions work 

The real benefit of buying a smartphone at Sam's Club is its AT&T promotions. Let's take a look at how these promotions work for three scenarios: new AT&T customers, existing users, and those upgrading their phones. 

New AT&T customers

New AT&T customers can receive a $250 discount and $35 activation fee waiver when they transfer an existing number ("port in") to the AT&T network. 

To be eligible for this discount, you must purchase a new eligible smartphone on a 36-month 0% APR installment plan. The discount starts within three billing cycles and is applied over 36 months, which translates to a savings of $6.95 per month. So, for example, if your base AT&T plan is $100.95 per month, then the 36-month discount would reduce your payment to $94.

Keep in mind that a 36-month installment plan will more or less limit you to that smartphone for the next three years. While AT&T does have an option to fast track your upgrade to 18 months for $6 monthly ("Next Up" plan), this plan isn't eligible for the $250 discount. To get the full $250 credit, you have to stay with this phone until the installment plan period is over. 

Again, this is for customers who do not currently have AT&T and would like to transfer their number to the network. Existing users are not eligible for this discount. 

Existing AT&T customers

If you're already on AT&T's network, you could save $100 when you add a new number to your account. The criteria for this discount is similar to the one mentioned above: You have to purchase an eligible smartphone on a 36-month 0% APR installment plan. The discount starts within three billing cycles, and it's applied monthly for a savings of roughly $2.78 per month. 

Upgrades 

Finally, existing AT&T users can save $50 for every phone they upgrade. Much like the other two discounts, you'll need to put your upgrade on a 36-month 0% APR installment plan. The discount applies within three billing cycles and over a 10-month period ($5 per month). 

Should you buy a smartphone from Sam's Club? 

Sam's Club's prices for smartphones are decent, but they're nothing to write home about. And while the AT&T promotions can be enticing, be sure you read the fine print before signing up. Understand what plans qualify for the promotions and when you should expect the discounts on your bills. 

It's important to know that the AT&T representatives at Sam's Club don't work for AT&T. As such, they don't have the same training as AT&T employees and might not be able to explain plans, promotions, and monthly charges as thoroughly as someone who works directly for the company. In fact, according to previous customers on AT&T forums and Reddit, working with AT&T representatives at Sam's Club can be a hassle: They often get things wrong, and you have to call a special hotline number to fix mistakes.  

You should also keep in mind that you likely won't see any major savings until your third billing cycle, and you might be charged the activation fee before it's credited back to you at a later date. That can come as a surprise, especially if you're expecting your monthly payment to be lower than what's charged to you. 

But if you can work around the fine print, buying a phone at Sam's Club could be a good deal, especially if your family is three or four people. Saving $6.95 per person for a four-person family comes out to $27.80 monthly, or $333.60 in savings per year. Saving that kind of money can give your budget some serious breathing room, not to mention more than pay for a Sam's Club membership itself.