The iPhone is a $600 device off-contract. You pay only one third, $199, on contract. Generally speaking, the total value of a two-year contract, including the phone, is between $2,240 and $2,600. Without the phone, it's between $2,040 and $2400. The notion that the phone is "too expensive" to upgrade is shortsighted at best.
If you don't upgrade every two years, you are giving free money to Verizon or AT&T (roughly $400) and diminishing the value of your contract (in the sense that you'll be using a device that can no longer take full advantage of the service provided).
(It goes up if you factor in the $299 iPhone, but I'm assuming the off-contract price of the higher storage iPhone is the same $100 extra.)
If you don't upgrade every two years, you are giving free money to Verizon or AT&T (roughly $400) and diminishing the value of your contract (in the sense that you'll be using a device that can no longer take full advantage of the service provided).
(It goes up if you factor in the $299 iPhone, but I'm assuming the off-contract price of the higher storage iPhone is the same $100 extra.)