I don't understand, iPhone 4 free on a two year contract?
How is the iPhone 4 free on a two year contract? Doesn't (0) times 24 still make 0? Why would you need a contract for a free phone and does that mean I can just walk into an iStore, ask for a iPhone 4 and boom I get it for free?
You sign a contract committing yourself to pay $XX.XX per month for the next 24 months. Upon agreeing to that contract they will give you a free iPhone and activate it for you under the contract.
You are then responsible for paying your monthly payments on time. At any time they feel you are unable to pay for your contract, they will shut your phone off remotely and send your account to collections.
Its called carrier subsidies. The price is already financed into the monthly payment. It's what fueled the smartphone boom over the past 5-6 years.
Since it's an older model the price of the is lower so they can afford to give it away for free and include it in the monthly contract.
that's why the new iphone will cost you 199 on contract and it'll cost you 650 off contract
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