Don't get me wrong, I am grateful they do, but never understood why the services offer upgrades on non-smartphone lines. For example, my second line- one that my wife uses- is for a non-smartphone (and is set at $9.95 a month with AT&T). This line recently qualified for an upgrade, allowing us to purchase an iPhone5- at $199., sell it on Craigslist for $750. and with the $500. profit, pay for her line easily for another two years. It's like getting free cell phone service with a little extra bank tossed in. If AT&T would only allow smartphone lines (those that pay the additional fee for internet and such) to qualify for subsidized smartphones they would earn extra money for their shareholders (of which I am not). I am sure I must be missing something in all these calculations and thus this thread.