Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Amazon sells Droid phones for a penny

penny_droid.top.jpgAmazon is selling Droid phones for 1 cent, part of a price war that's pushing smartphone prices to rock bottom. By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- Amazon is currently selling all Droid phones for a penny when customers sign up for a new Verizon Wireless contract.

The deal is good for all of Verizon's (VZW) U.S. Droid phones, including the Droid X and new Droid Pro, through November 22. Customers starting new accounts will also get a $35 credit to cover the full cost of activating the phone.

Smartphone competition across all carriers seems to be sparking a race to the bottom in pricing -- a far cry from the $199 "magic price point" that's been in place so far.

Amazon (AMZN, Fortune 500) kicked off the smartphone-for-a-penny campaign back in August, when it slashed the Samsung Vibrant to 1 cent. Just last week, the site was selling two Windows 7 phones -- the HTC Surround and LG Quantum -- for 1 cent with a two-year contract from AT&T (T, Fortune 500). Last week's special also included some BlackBerry, Android and Palm models.

It's tough to beat a 1 cent deal, but that's applicable only to new accounts -- current customers are left out. Those eligible to upgrade their phones and extend their contracts can get a discounted phone -- for the Droid X, it's currently $49.99 -- but anyone not eligible for a trade-up will be paying full freight. That's $559.99 right now on Amazon for the Droid X.

A Verizon Wireless representative declined to comment on the offer, which Amazon said the company is sponsoring.

Best Buy's (BBY, Fortune 500) deal is no one-penny special, but the retailer is offering the Droid Pro for $99.99 to existing Verizon Wireless customers who sign a new two-year agreement. That's $80 off the usual price with a signed contract.

It's still relatively early in the smartphone game, and it's still an open question how low the price will go. Ultimately, the device could become merely a throw-in incentive to buy a wireless contract.

There's one smartphone that customers won't see in the bargain bin, however: The iPhone. Apple (AAPL, Fortune 500) generally doesn't allow its devices to be sold for any much less than the sticker price. To top of page

Index Last Change % Change
Dow 17,651.26 -99.65 -0.56%
Nasdaq 4,725.64 -37.59 -0.79%
S&P 500 2,051.12 -12.25 -0.59%
Treasuries 1.78 -0.02 -0.89%
Data as of 7:47am ET
Company Price Change % Change
Bank of America Corp... 14.13 -0.23 -1.60%
Freeport-McMoRan Inc... 11.80 -0.21 -1.75%
Apple Inc 93.62 0.57 0.61%
Micron Technology In... 10.00 -0.36 -3.47%
General Electric Co 30.07 -0.56 -1.83%
Data as of May 4
Sponsors

Sections

Tesla CEO Elon Musk had said previously that the automaker would become "cash-flow positive" this year. But in a letter to shareholders Wednesday, Musk signaled that won't be the case after all. More

Iris Hu's Taiwanese immigrants who wanted her to become a doctor or lawyer. Instead she found her own path through art. More

Oakland-based tech startup Clef hosts dinners for the local community in a bid to resist gentrification and unite all types of industries that make up the city. More

Visa says new software will allow consumers to check out with chip cards as fast as swiping a card with magnetic strip. More