Phone prices are rising—here’s how to avoid the cost

What happens when breaking your phone breaks the bank? 

Many consumers are feeling the squeeze as the price of new phones goes up. Fortunately, phone protection plans make the inevitable screen crack, wear, and tear, or mechanical failure easier (and more affordable) to deal with. 

In this guide, you’ll learn budget-friendly ways to protect, replace, and repair your smartphone.

Why phone prices are only going up

All signs point to a significant price hike for phones in the near future. On average, U.S. smartphones cost $818 in 2023, and that number is expected to surpass $1,000 by 2028.

Why is this happening? Here are a few reasons: 

• Tech upgrade costs. The latest wave of smartphones has sophisticated features (i.e., generative artificial intelligence) that require technology that’s, well, more expensive to produce.
• Tariffs. Tariffs will impact the price of smartphones, as most raw materials are sourced abroad. It is unlikely that price hikes will be avoided, even if tariff sizes are reduced. This will likely only delay the impact on prices.
• Economic uncertainty. Other factors in the economy are causing businesses to cut costs, which typically results in increased product prices. 

How a protection plan can help you save

No matter the state of the economy, one thing remains the same: people will still accidentally damage their phones. 

A protection plan is always a good idea, especially when 38% of incidents occur within the first 12 months of a phone's contract*. Protection plans help protect against unexpected repair or replacement costs. Otherwise, you might be stuck paying more out of pocket if you have to repair or replace the device — and no one wants to be faced with unplanned expenses, especially right now.

On top of that, 60% of Americans say they could go no more than a day without their phone if it were damaged so badly that they couldn’t use it*. Many people depend on their phones to generate their income(s), making a broken phone even more of a financial blow.

What a phone protection plan covers

Depending on your provider, a smartphone protection plan may cover:

• Breakdowns: mechanical or electrical malfunctions. 
• Accidental damage: drops, spills, cracks, and other physical damage. 
• Wear and tear: defects due to normal use. 
• Loss and theft: Coverage for lost or stolen devices.
• Repair or replacement: expert repairs or, in some cases, a replacement device. 
• Tech support: Some plans include tech support for setup, connectivity, and other issues. 

Make sure to choose a protection plan that fits your needs and always read the terms and conditions.

Why a protection plan makes sense for your budget

A protection plan may increase monthly costs, but you’ll pay significantly less in case of damage or catastrophe. Phone insurance helps keep overall costs down by providing repairs, expert advice, and refurbished phone options.

Smart ways to avoid having to buy a new smartphone

As the price of new smartphones goes up, here are some ways to save:

1. Repair instead of replace. There are situations where repairing a phone makes way more financial sense than replacing it. The price of high-end smartphones is approaching $1,000. Meanwhile, the average cost of a screen repair on those same models is considerably less, especially if you have a protection plan.
2. Buy refurbished or used. It pays to explore the robust secondhand and refurbished phone market. Research your options and pick the most reputable seller. Some places, like uBreakiFix® by Asurion, will let you test all features of a refurbished phone before buying.
3. Trade in your phone for credit. Many carriers offer phone trade-in programs in which your account is credited for an upgrade. These programs are paid off over time, so there’s less of a windfall up front.
4. Choose a budget-friendly model. If you are on a budget, it makes sense to select an older model smartphone that only has the essentials.
5. Clean your storage and software. Regularly checking on your phone’s health and keeping software updated will reduce the likelihood of a phone breakdown.
6. Replace your battery. Sometimes, a battery issue doesn’t mean you have to buy a brand new phone. Explore battery replacement options and follow tips to extend your phone’s battery life.
7. Keep it protected with a case and screen protector. If accidents are going to happen no matter what, mitigate potential damage by keeping your phone in a case!

How uBreakiFix® by Asurion can help you save money

At uBreakiFix® by Asurion, our smartphone repair experts can help get your device back up and running as quickly as possible—without the hassle—whether you need a cracked screen repair, a battery replacement, or a general checkup. Our local experts have completed 21 million+ repairs, and are trained to fix all smartphones—including Apple®, Samsung Galaxy®, and Google Pixel® devices—using top-quality parts and equipment provided by the manufacturers. Better yet, all repairs are backed by protection. uBreakiFix® by Asurion also sells high-quality refurbished phones at a lower cost than a new one.

FAQs 

Why are phone prices going up?

Phone prices are going up due to a mix of factors, including tariffs, economic uncertainty, and the price of the sophisticated technology found in the latest generation of smartphones.

Are phone protection plans worth it?

Protection plans provide a ton of value under normal circumstances — but might be even more worthwhile right now, given all the uncertainty surrounding consumer electronics price hikes. Mostly, protection plans offer predictability, helping you plan and ensuring you get long-term value out of your product.

What’s the difference between insurance and a protection plan?

Insurance plans cover unexpected events that result in loss, theft, or damage. Protection plans, on the other hand, cover the cost of repairs or replacements for specific items, often due to normal wear and tear or mechanical failure. 

Can I get my phone fixed instead of replacing it?

Yes, especially if repairs are covered by a warranty or protection plan. A good rule to follow: If repairing your phone costs half as much as buying a new one—or more—consider getting a new phone, especially if yours is more than a few years old.

*Asurion Claims Data 2024