Walmart is selling a new $10 Android phone, but don't let the tech bloggers fool you — there are strings attached (but no tin can on the other end).
"There are a bunch of stories going around today about a supposed $10 Android phone being sold at Walmart, which seem to be driven by foreign journalists who don't understand how Tracfone or Walmart work,"
PC magazine reported Monday.
While many reports would have you believe that consumers can walk into Walmart, hand over a Hamilton, and choose from either the LG "Sunrise" L15G and LG "Lucky" LG16, and hook it up to one's preferred cellular service carrier, this is simply not the case.
As many pointed out, customers who purchase either phone are committed to a 12-month carrier contract with Tracfone. Traditionally, Tracfone has been primarily a prepaid carrier, meaning there were no contracts, but the new phones specify that they are locked into a one-year contract with monthly service fees. Only after the first year can a customer unlock the phone, and use it on another cell network.
"Tracfone sells you a cheap Android phone, and then makes its money back (there's at least a $50 subsidy on this) by slightly overpricing its airtime for the next year," explained PC.
"Walmart's supposed '$10 Android phone' is just like the 'free phones with two-year contract' that used to be more common in the U.S. before T-Mobile started blowing up the carrier contract scene. It ties you to Tracfone's service, and that's a step backwards, not a step forward for low-income Americans."
For those who still might be interested in the phones, they boast a 3.8-inch touch display, a 1.2GHz dual-core processor, a 3-megapixel camera and run the Android 4.4 KitKat operating system.
"So yes, it’s a very outdated device,"
concluded tech website BGR.com.
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