Comment Cheaper with contract for me (Score 1) 482
I actually like the contracts and the benefits they provide as they are certainly cheaper for me and the way I use my phone.
Currently I do this:
Every year I pay $200 for the new iPhone.
Then I pay $50/mo for my service which includes minutes and unlimited data.
Then at the end of the year I sell the 1 year old iPhone that I kept in great condition for $300.
So at the end of the year my total cost was $500 (200 + 600 - 300).
If I were to go with no contract a new iPhone would cost me $650 for the same phone. At the end of the year I would still get the same $300 back when I sold it. So I would have paid $350 already. This means my monthly cost for service needs to cost $12.5/mo to make my total cost paid for the year be the same $500 I am paying now with a contract.
The contract discount is worth $450 a year in my case so the monthly cost for the service needs to be $450 less per year in order for the contract and off contract to be the same cost for me.