Missing something?

[SHirsch999]

I think I must be missing something, so I am hoping it can be explained to me. I am new to the world of smartphone ownership, so I just do not understand some of the things that get discussed regularly on these boards. My big confusion right now - why would someone want to buy an iPhone for more than the price you would buy it for with a contract? I see so many posts about people selling/buying them for $300 or $400, or more. Don't you still need to get a contract for those phones to use them? The same phone (actually likely a "newer" phone since it is not pre-owned) is available at the store for $200 or $300 (with a contract). I am guessing the issue is with the contract, but what is it? Someone, please help to enlighten me. Thanks!
- Scott

 

[blevins321]

The big surge for domestic out-of-contract purchases is to unlock the phones for use with another GSM carrier. I have a friend who uses his iPhone with Cincinnati Bell and loves it. Another big reason for the high sales is for resale internationally. Many countries besides the U.S. don't use subsidized phone plans. Their customers must buy the phone outright. In exchange, their contact price is typically significantly lower.

 

[ZombieZakk]

well if you dont have an upgrade and want a new phone you have to pay more just like buying it no commitment a 32gb iphone 4 is $300 on contract with an upgrade but if you do not have an upgrade it is $700 so you can see why people will pay 500 for a lightly used one.

 

[The Californian]

Either to get one that is unlocked, or to get one off contract. Some people want to have the newest iPhone even if they are ineligible for the upgrade pricing.

 

[SHirsch999]

The big surge for domestic out-of-contract purchases is to unlock the phones for use with another GSM carrier. I have a friend who uses his iPhone with Cincinnati Bell and loves it.

Ahh, thanks. I did not realize that was possible. I thought the phones could only be used on Verizon's or ATT's networks.
- Scott

 

[SHirsch999]

well if you dont have an upgrade and want a new phone you have to pay more just like buying it no commitment a 32gb iphone 4 is $300 on contract with an upgrade but if you do not have an upgrade it is $700 so you can see why people will pay 500 for a lightly used one.

Thanks, that I can kinda understand. Please forgive my ignorance, and I do not mean to offend you or anyone else, but if you are still under the contract (not upgrade eligible) why would you want or need a new phone? It seems like it would be kinda a lot of money to pay for the new phone, plus a new contract, plus the ETF. Can the old contract be transferred to the new phone?

 

[blevins321]

but if you are still under the contract (not upgrade eligible) why would you want or need a new phone? It seems like it would be kinda a lot of money to pay for the new phone, plus a new contract, plus the ETF. Can the old contract be transferred to the new phone?

Common reason is in case you break it. Other times, people just decide that they want the new features. Yes, the old contract can transfer, and you keep the upgrade date that you originally had.

 

[SHirsch999]

Yes, the old contract can transfer, and you keep the upgrade date that you originally had.

Wow! Thanks! I think that answers everything for me right there. So, if I am understanding this correctly, I can buy an iPhone 4 right now, and then transfer my contract over to an iPhone 5 when they come out in a few months and sell my iPhone 4 to pay for it. Is that correct?

 

[blevins321]

Wow! Thanks! I think that answers everything for me right there. So, if I am understanding this correctly, I can buy an iPhone 4 right now, and then transfer my contract over to an iPhone 5 when they come out in a few months and sell my iPhone 4 to pay for it. Is that correct?

Obviously check with your carrier for sure. But I think so, yes. Depending on whether or not you get 'early upgrade' pricing (advertised price + $250 on AT&T) or no-commitment pricing is contingent on timing of your purchases. If you'll qualify for the 'real' upgrade when you go to purchase the iPhone 5, you might even make a profit depending on the price that you pay for the iPhone 4 now.

 

[tigress666]

Thanks, that I can kinda understand. Please forgive my ignorance, and I do not mean to offend you or anyone else, but if you are still under the contract (not upgrade eligible) why would you want or need a new phone?

Um, you have to ask?

Here's some reasons you may want or even need a new phone if you are under contract:

1. Your phone was stolen.
2. Your phone was broken for whatever reason and is completely unusable.
3. Your phone was broken and is usable but it is a real annoyance cause of damage.
4. You ended up hating your current phone and a much better one came out and you don't want to have to deal with your hated phone for any longer
5. You just really want that new phone and you have the money to justify not waiting until contract runs out.