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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,132.70 -81.72 -0.45%
Nasdaq 4,963.53 -24.36 -0.49%
S&P 500 2,104.50 -6.24 -0.30%
Treasuries 2.00 -0.01 -0.69%
Data as of 6:11am ET
Company Price Change % Change
Bank of America Corp... 15.81 -0.23 -1.43%
Apple Inc 128.46 -1.96 -1.50%
General Electric Co 25.99 0.10 0.39%
Microsoft Corp 43.85 -0.20 -0.47%
Chesapeake Energy Co... 16.68 -0.52 -3.02%
Data as of Feb 27
Sponsors

Sections

Berkshire Hathaway CEO Warren Buffett released his 50th annual letter to shareholders. The Oracle of Omaha thinks the next 50 years will be great and knows who will replace him. More

Potential presidential candidate says that improvement in unemployment rate is due to millions of jobless not being counted. More

With the death of Leonard Nimoy, the actor who played Star Trek's Spock, we remember his character's legacy: The technology we use every day. More

A social media frenzy about the color of a dress is bringing fame and fortune for one small British fashion company. More

The top 5 consumer complaints have to do with identity theft, debt collectors, imposters, telephone companies and banks. More