How do phone upgrades work? Everything you need to know

A phone upgrade is the process of replacing an older mobile device with a newer smartphone that offers better performance, updated functionality and new hardware features. You can upgrade by buying a new phone outright or by financing it through your mobile carrier or vendor.

You can pay the full price directly from a vendor or from your wireless provider’s store or pay monthly installments over a one-to two-year contract. Many carriers also offer leasing or phone rental options that give customers access to the latest smartphone models without long-term ownership.

When you upgrade your phone, most carriers give you the option to trade in your old device either at checkout or within a set window later.

The trade-in value applies as credit towards your new smartphone, which lowers the total cost. The old mobile phone must be fully functional and in acceptable condition to qualify.

Mobile carriers also often give a short grace period to test the new device and return it if it doesn’t meet your expectations.

Once you receive your new smartphone, back up your old one, sign in on the new mobile device and transfer your data, apps and settings. Insert your SIM card or set up an eSIM and complete activation with your wireless provider. Many providers, including Astound Mobile, let you complete these steps in their mobile app.

If you buy your phone upfront or already own a compatible device, providers like Astound let you bring your own device (BYOD). The phone must be unlocked, 4G or 5G-ready and compatible with the network. Once you set up your device by signing in with your Google or Apple ID and transferring your files, you can activate your Astound mobile account and subscribe to a cell phone plan to get started.

Once setup is complete, you can return your old device if required by your upgrade agreement.

Upgrade eligibility depends on your service provider’s policies and requirements. You can usually confirm eligibility in your online account, in the provider’s mobile app or by contacting your provider’s customer support.

This step confirms whether you can upgrade at that point in your current plan, especially if you are financing your current phone. It often depends on how long you’ve had your phone, how much you’ve paid off and whether your plan accepts early upgrade options.

If you plan to trade in your mobile device, your provider will also check trade-in eligibility. The phone should power on, be in acceptable condition and meet requirements to receive credit toward your new smartphone.

What should I do before sending in my phone for an upgrade? Make sure your mobile device is backed up, reset to factory settings and packaged securely for shipping. Taking these steps to remove personal information before upgrading helps protect your data, prevent delays in the evaluation process and reduce the risk of your device being declared ineligible.

Upgrade timelines vary depending on your wireless provider. Some allow upgrades as early as one month into your plan, while others require you to finish the contract or you’ll have to pay off the remaining balance on your current phone.

Always review your cellular provider’s terms and conditions regarding smartphone upgrades. These terms include any restrictions, warranty policies, upgrade windows or additional payments required. Knowing these details upfront helps ensure a smooth upgrade process.

The cost of upgrading your smartphone depends on several factors, including your mobile provider’s terms, the mobile phone model, how you pay and any active promotions or deals available. Some mobile carriers may charge an upgrade fee to cover administrative costs, which is usually added to your next bill or paid at the time of purchase.

A substantial component of the total cost is usually the price of the new mobile device itself. Depending on your budget and preferences, you can pay in full, spread payments over time, lease or rent or reduce the cost with a trade-in program.

You can cancel a phone contract, but you’ll likely have to pay early cancellation fees and other penalties.

Breaking a contract usually has financial implications and the exact price of cancellation depends on your mobile provider’s policies and the contract’s remaining billing period.

Phone contracts generally include early termination fees to recoup the expenses of subsidizing a phone or offering incentives at the contract’s start. These fees are usually specified in the contract’s terms and conditions.

In addition, carriers may impose prorated costs for talk, text and internet data services used before the cancellation date. If your plan involves device financing, you may have to pay the remaining balance on your mobile phone in full to cancel the agreement.

If you cancel your phone contract and would like to upgrade and switch to a new carrier, some carriers run promotions that may cover part or all of your remaining device balance or early termination fees, up to a certain limit.

Before you cancel your phone contract, explore other options your provider has to offer. Some wireless providers give you a short grace period when you first sign up or purchase a new smartphone to test it.

If the mobile phone doesn’t meet your expectations, you can use that window to cancel the contract without penalty.

Other options include transferring the phone contract to another person, placing the plan on temporary hold or negotiating a mutually beneficial arrangement with the wireless provider.

Remember to talk to your carrier’s customer service about contract cancellation. They can review your eligibility, explain any outstanding payment requirements and walk you through the next steps.