I'm not mixing up anything. Even if the 1 year cost for the extra line is just $120, you're required to keep it for 2 years so your total cost for that line is $240. That's what people should look at. Sure, you can use your main line to upgrade in the 2nd year but you still need to keep paying $10 for that dummy line until the contract is over.
If you do the early upgrade, you just pay the slightly discounted rate of $450. There's no separate ETF but early upgrade does extend your contract by another 2 years.
You can sell your old phone regardless of whether or not you do the early upgrade or the dummy line.
EXACTLY, the main line becomes the "dummy" line that second year so the cost/math is exactly the same as the first year.
To RECAP
1st year
Line A monthly Fee ???
iPhone 1 being used
Line B added at 9.99 a month
iPhone 2 purchased at 300
iPhone 1 sold at 300
Line A Month Fee ???
Line B 9.99 a month
iPhone 2
2nd year
Line A Month Fee ???
Line B 9.99 a month
iPhone 2
iPhone 3 purchased (on line A) for 300
iPhone 2 sold for 300
Line A monthly fee ???
Line B 9.99 a month
iPhone 3
As you can see the payments are ALWAYS main line + 9.99 a month x 12. So your comparison of the 2 yr service cost (and inclusion of device cost) to the 1 year ETF skews the numbers because it doesn't show that you are over paying by 330 dollars each year.
Side-note, I have a feeling you have been overpaying for your iPhone each year.
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