what us the best smartphone

Discover how to choose the best smartphone by balancing upfront cost, plan expenses, and long-term value without overspending.

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Published: Updated: By the Cell Phone Carrier Research Team

The best smartphone for most US consumers is a mid-range model from a major manufacturer, offering strong performance for 70% of everyday tasks at half the price of a flagship. Total cost includes the device plus a 2-year plan average of $1,440.

Average monthly plan cost: $60Average smartphone lifespan: 3 yearsUsers keeping phone 2+ years: 65%Median upfront cost of top-selling phone: $799Savings from buying last year’s model: $200

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Total Cost of Ownership

The best smartphone is not just about the upfront price tag; it’s about the total cost of ownership (TCO) over the life of the device. TCO combines the purchase price (or monthly financing) with the cost of a cellular plan over two to three years. According to the Consumer Expenditure Survey, the average US household spends about $60 per month on wireless service, totaling $1,440 over 24 months. Adding a flagship phone at $1,000 brings the two-year TCO to roughly $2,440, while a capable mid-range device at $400 cuts that to $1,840—a savings of $600. Major manufacturers now offer mid-range models that deliver 90% of the performance of their premium counterparts for half the price, making them the best value for most users.

Source: Consumer Expenditure Survey, Bureau of Labor Statistics, 2024.

Plan Pricing Impact

The plan you choose can dramatically affect which smartphone is best for you. Postpaid plans from major national carriers often include device subsidies or 0% financing, but the monthly service fee is higher—typically $70–$90 for a single line with premium data. Budget providers offer prepaid plans for as low as $25–$40 per month on the same networks, though they rarely include device financing. When selecting a smartphone, factor in the plan cost: a $500 phone on a $30 prepaid plan costs $1,220 over two years, while a $1,000 phone on a $80 postpaid plan costs $2,920. The difference is $1,700, enough to buy two additional mid-range phones. Always compare the combined price before committing.

ScenarioDevice CostMonthly Plan2-Year Total
Mid-range + prepaid$400$30$1,120
Flagship + postpaid$1,000$80$2,920
Source: FCC Mobile Wireless Competition Report, 2024; industry averages.

Prepaid vs Postpaid

Choosing between prepaid and postpaid plans directly influences the best smartphone for your budget. Prepaid plans offer lower monthly costs, no credit checks, and no long-term contracts, but they typically require you to buy the phone upfront. Postpaid plans spread device payments over 24–36 months and often include perks like streaming subscriptions, but the monthly service fee is higher. The Tax Foundation notes that wireless taxes and fees add an average of 14% to postpaid bills and 8% to prepaid. For a mid-range smartphone, the prepaid route can save you $200–$400 over two years after accounting for taxes. If you prefer to upgrade every year, postpaid financing may be more convenient, but the total cost is higher.

  • Prepaid: Lower monthly cost, upfront device payment, fewer taxes/fees.
  • Postpaid: Higher monthly cost, financed device, more perks, higher taxes.
  • Best for: Prepaid for budget-conscious buyers; postpaid for those who want the latest flagship without upfront cash.
Source: Tax Foundation, Wireless Tax Burden Report, 2025.

Upgrade Cycle and Value

The best smartphone also depends on how often you upgrade. Data from the Consumer Technology Association shows that 65% of US users keep their smartphone for 2 years or more. A premium flagship model retains resale value better—losing about 40% after two years—while a mid-range phone loses roughly 50%. However, the lower initial cost of a mid-range device means the absolute dollar loss is smaller. For example, a $1,000 flagship worth $600 after two years loses $400, while a $400 mid-range phone worth $200 loses only $200. If you plan to keep the phone for three or more years, the difference narrows as both depreciate to near zero. The best value strategy is to buy a mid-range device and use it for three years, avoiding the upgrade treadmill entirely.

Source: Consumer Technology Association, Annual Ownership Survey, 2025.

Value Recommendations

For most US consumers, the best smartphone is a mid-range model from a major manufacturer purchased outright and paired with a prepaid plan from a budget provider. This combination delivers strong performance, reliable network coverage, and the lowest total cost of ownership. If you frequently use demanding apps or want the best camera, a flagship model may be worth the premium, but only if you plan to keep it for three years or more. Always compare the total cost—device plus plan plus taxes—before buying. The FCC’s Broadband Label rule requires carriers to disclose all fees, making it easier to compare. Use that transparency to find the best smartphone for your specific needs.

Source: FCC, Broadband Consumer Label Rules, 2024.
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Frequently Asked Questions

What is the best smartphone for under $500?

Mid-range devices from major manufacturers offer the best value under $500, delivering 90% of flagship performance at half the price. Pair them with a prepaid plan to keep total cost low.

Does a more expensive phone save money on plans?

No, plan costs are independent of device price. However, some postpaid plans include device financing, which can spread the cost without interest. The total cost is still higher than buying a cheaper phone outright.

How much does the average US household spend on smartphone plans?

The average wireless plan cost is about $60 per month per line, according to the Consumer Expenditure Survey. Over two years, that adds up to $1,440 per line.

Is it better to buy a phone outright or finance it?

Financing on a postpaid plan is convenient and often interest-free, but the total cost is higher due to the more expensive plan. Buying outright and using a prepaid plan saves money in the long run.

What is the best smartphone for someone who upgrades every year?

For annual upgraders, a flagship model with high resale value can minimize losses. However, you still pay more overall. Consider leasing-like programs from major carriers, but compare total annual cost.

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