Originally Posted by gort
The provider subsidizes part of the phone cost and you pay it back over the 2 years of your contract. You still pay the full $649 for the phone you just only pay $199 up front and the rest is built in to your monthly bills.
I think in the States you're pretty much expected to commit to a two year plan, with a stiff early termination fee if you decide to cancel? AT&T or Verizon are going to get their money whatever happens. People don't normally buy unsubsidised phones in the US? Whereas in the UK pre-paid, no commitment plans seem to be the norm. That's what I had, and everyone else I know in the UK uses. You can change carrier any time you like. You just buy the iPhone 5 and put whatever SIM you like in it?
BTW I can't wait to see the armed riot squads outside the Apple Store in Beijing, when Apple releases the iPhone 5 here. Probably around December time. Fortunately Apple seem to have relented on their mandatory two year contract requirements here, and the iPhone 4S is available pre-paid, no commitment on two different carriers.Edited by MikeDT - 9/13/12 at 9:58pm