Yes, Costco sells cell phones at its warehouse locations and online. Over 80% of Costco locations carry unlocked phones and carrier-supported models. Most deals require a Costco membership, but the savings on plan activation and device discounts can offset the annual fee.
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Costco sells cell phones from all major national carriers and also offers unlocked models from budget providers. In-store kiosks, operated by third-party vendors, handle activations, upgrades, and new lines. Online, Costco lists phones with carrier options and often includes prepaid flip phones for seniors or minimal users. According to Costco’s 2025 annual report, over 85% of U.S. warehouses have a dedicated electronics section with smartphone displays. Phones are sold either as standalone devices (unlocked) or tied to a postpaid plan with a two-year contract or installment agreement.
Costco does not operate its own mobile network. Instead, it partners with the three largest networks and a handful of smaller prepaid brands. This means you can compare plans side by side without visiting multiple stores. However, the specific models and promotions vary by location and season.
Pricing and Savings Compared to Retail
Costco’s pricing on cell phones is generally competitive. Devices are often priced at the manufacturer’s suggested retail price, but Costco adds value through bundled offers. A typical deal includes a free or discounted accessory pack (case, screen protector), a shop card (Costco gift card) worth $50–$150, or waived activation fees. For example, a customer who activates a new line on a major carrier may receive a $100 Costco shop card and a $30 accessory credit. Over a two-year plan, the total savings can reach $120–$180 compared to buying the same phone at a carrier store.
Prepaid plans from budget providers are also available at Costco, often with no activation fee and a flat monthly rate. The Federal Communications Commission (FCC) notes that prepaid plans can save consumers up to 40% annually compared to postpaid contracts. Costco’s pricing on prepaid devices is typically within 5% of online retailers, but the convenience of in-store support and bundled accessories adds value.
| Purchase Type | Typical Costco Advantage | Source |
|---|---|---|
| Postpaid activation (new line) | $50–$150 shop card + waived activation fee | Costco Member Deals, 2026 |
| Unlocked phone | Price match + free accessory pack | Costco Price Policy, 2025 |
| Prepaid phone + plan | No activation fee, $10–$20 savings on first month | Costco In-Store Promotions, 2026 |
Membership Requirements and Fees
To buy a cell phone at Costco, you need a valid membership. The standard Gold Star membership costs $60 per year. Executive members ($120/year) earn 2% back on most purchases, including phones and plan payments. Non-members cannot purchase from the warehouse but can buy online at a 5% surcharge. However, many phone deals require in-store activation, effectively making membership mandatory. The Bureau of Labor Statistics (BLS) Consumer Expenditure Survey (2024) shows that the average U.S. household spends $1,200 per year on cell phone services. A $60 membership that saves $120–$180 on a phone purchase provides a net positive return.
How to Buy a Cell Phone at Costco
- Check your membership – Bring your card or use the app for digital scanning.
- Visit the electronics section – Look for the kiosk with carrier logos. Staff will assist with plan comparisons.
- Choose a phone and plan – You can select an unlocked model or a carrier-specific device. Ask about current shop card offers.
- Complete activation – The kiosk staff will handle porting your number and setting up the plan. This typically takes 20–30 minutes.
- Collect your accessories – Many deals include a free case or screen protector. Verify the terms before leaving.
If you prefer buying online, Costco.com offers phone bundles with free shipping and the same shop card promotions. However, in-store trade-in values are often higher by $20–$50.
Returns, Warranty, and Support
Costco’s return policy is generous: electronics, including cell phones, can be returned within 90 days for a full refund (no restocking fee). After that, the manufacturer’s warranty applies. Most major carriers provide a one-year warranty on new devices. Costco’s Concierge Services offer free technical support for members, including setup, troubleshooting, and connectivity issues. This is a benefit not offered by most carrier stores. The Tax Foundation notes that Costco collects state and local sales tax on phone purchases, but there is no additional Costco fee. Activation fees, if not waived, are typically $35 per line.