Iphone Buying: Apple Store Vs Carrier Vs Best Buy

A quick inquiry of costs involved in buying a new iphone with a 2-year contract with some carrier in US seems as if it does not matter where you buy the iphone from, be it Apple online store or instore or some carrier store like ATT or at a retailer store like Best Buy. But a closer look might yeild a different perspective.

Apple store:

• sells only new devices. Does not sell refurbished devices
• 16GB Iphone 4s with taxes costs approximately $255 in california. even though the advertised price is $199. Taxes are always calculated on the original price of the phone but not the discounted retail price
• apple has a no strings attached return policy within 30days of purchase
• apple is not responsible for cancelling the contract with the carrier. A new purchase is locked in catract only after 30days. So make sure you call the carrier to cancel the contract if you purchase and return a new phone through apple

ATT store 

• sells both new and refurbished devices. Refurbs are slighly cheaper ofcourse
• 16GB Iphone 4s with taxes costs approx $255
• ATT has 30day return policy but charges $35 restocking fees. There is no restocking fees with apple. Restocking fees is applicable even if the device is not taken out of the box with ATT.
• ATT takes care of cancelling the contract if the phone is returned with in 30days

Best Buy

• Sells both new and refubs. Refurbs are cheaper
• 16GB Iphone 4s with taxes costs approx $255
• Best buy charges no restocking fees within 30days
• They also have a buy back program
• if the device is returned between 2-4 months they pay approx $340
• between 4-12 months they pay approx $250
• between 12-18 months they pay approx $140
• best buy claims that the buy back rates are applicable as long as the device is working and nrmal daily wear and tear is ok
• let us say the iphone 5 is released next summer and some one who just bought iphone 4s in november wants to get iphone 5, he can return iphone 4s at best buy for $340 and get the iphone 5 from best buy. But the carrier will charge early upgrade fees of $250