What does it mean to have an iphone on contract? - 1
I was researching and it said that an iphone 5 on a 2 year contract would cost $199 or $299, but one without a contract would cost above $500. Please can someone explain to me what having a iphone on contract or without means?
On a contract means you pay it off monthly little by little until you reach $500. The $299 or $199 is whatyou pay upfront so you would pay the remainder off as you go for two years
On contract explains itself, you are stuck paying the carrier for 24 months, even if the phone dies, gets stolen or you lose it. YOU must pay until the end of he contract, and IF you are making monthly payments in the phone as well, you still pay off the phone for the entire 24 months, again even if the phone is lost or destroyed.
So paying for the phone over time or outright is your choice.
Contract would mean the cost is subsidized (which is why it is lower) & then eventually paid out over the course of the 2 years (actually ends up being more than the cost off the phone itself over that time).
Of course off contract means you pay the cost upfront & that's it. Also the option of an unlocked phone is there as well, which is pretty much the same, except that the phone is able to work on any GSM carrier in the world.
Most would buy on contract because getting an iPhone for $199 is a lot more enticing than $649.
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