Why are cellphones, tablets and other gadgets cheaper in stores like Walmart and Costco than they are if you buy directly from the manufacturers?

Well. All I know it's like a Catch, when they're not expensive. They run ads instead and much more.


It's not your's. They own everything on your phone unless, you decide to install a new OS on your phone.


That's how they get their money worth is to collect data from your interest. That creates revenue. That includes most phones these days.

Bulk purchasing
carrier agreements promotional offers
competition
return policies

I googled your question and I came up with those categories

That's a really good question! I have no idea 🤷‍♂

Service provider is the huge reason. The cellphone is a fixed provider with Walmart. Where it's not fixed through the manufacturers.

You can't remove the provider easily through Walmart.

I want an iPhone and have been wondering the same thing

If they sold them for less than the distributors then nobody would buy from the retailers.. so they keep the price high at the source

Much less capabilites on most those. Less onboard memory capacity Lower speed processing chips. Most are prepaid phones

Because they're mostly refurbished on prepaid plans.