What does '2 year contract price' mean?
Hi! So near the end of the year i'm planning to get a new phone with AT&T because i don't like my current one, with metroPCS. I was really hoping to maybe get an iPhone 4S! However, there's a 'no commitment' price and a '2 year contract price'. I'm kind of confused on what the 2 year contract price really means because it doesn't really explain it. Does it mean you had to have a phone with a contract for two years to buy it for that price, or does it mean if you're planning on getting a two year contract? This probably seems like a ridiculous question but it'd really help.
It means that you have to start a 2 year contract with them to get the phone for that price.
"if you're planning on getting a two year contract"
The no commitment price is the cost of the device if you were to buy it outright from AT&T without signing a contract - so in essence you would be paying full price for the phone. The 2 year contract price is the cost of the phone if you were to sign a two year contract at the same time you bought the iPhone 4S; this is usually a lower price because network carriers offer discounts on phone purchases if you join their network to draw in customers.
If you get the phone with a two-year contract, you get it cheaper because you're paying back some of the phone cost in your month-to-month bills.So, a phone that costs $500 retail might cost $100 with a new 2-year contract, because $20 of your monthly bill will go towards the cost of the phone. If you break the two-year contract, you pay an early termination fee, usually around $375 - $15 or so per month… Which covers the rest of the cost of the phone.
If you buy the phone off-contract, you pay more initially, but there's no two-year contract or early termination fee, so you can change companies at any point or start a contract for a cheaper phone later.
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