exactly.. buy iphone 4 now ($200+tax) and sell it once iphone 5 comes out (net $200 to get iphone 5 after selling iphone 4). point is she would still be paying $200+tax if she wanted for iphone 5
You're not very good at math, are you? The Verizon contract is 2 years, so she can't just buy the iPhone 4 now, then buy the iPhone 5 when it comes out at contract price. I have no idea where you get the idea that buying the iPhone 4 now will let her upgrade earlier next time. So that leaves the following options:
Buy iPhone 4 now: $200 (contract price)
Sell iPhone 4 later: -$450 (estimated)
Buy iPhone 5 later: $650 (retail price)
Total cost: $400
Or...
Buy iPhone 4 now: $650 (retail price)
Sell iPhone 4 later: -$450 (estimated)
Buy iPhone 5 later: $200 (contract price)
Total cost: $400
Or...
Buy iPhone 4 later: $200 (contract price)
Total cost: $200