Upgrading Your Cell Phone
Most consumers in the US upgrade to a new cell phone once every year two years. Although most of us don’t need and won’t use the latest in mobile technology, a majority of subscribers will purchase the newest iPhone or Google phone as soon as they are eligible for an upgrade from their mobile service provider.
When your contract is up (usually 2 years), you are eligible for “upgrade pricing” on a new phone. Upgrade pricing is the price that is shown when you look at the mobile service provider’s web site and the price is in big letters. The price of the new phone will vary from “Free” to over $200, depending on what phone you choose to get. If you upgrade your phone, you will be required to sign a new contract to get that pricing (generally 2 years).
The reason for the contract is that the phone company is paying part (or all, in the case of a “Free” phone) of the price of the phone in exchange for “locking” you into your current plan for the next 2 years. Part of every bill you are paying goes to that cost of the phone. If you are using your phone “out of contract” the phone companies LOVE it, because [Read more…]