Avoiding an iPhone Service Contract

For many people who want the latest and greatest phone which is obviously the iPhone, it can be frustrating to buy the phone for a lot of money, pay for an expensive mobile service plan, and then get locked into a two year contract where you become an annuity for AT&T! Many people don't like the inflexibility associated with a contract since it makes canceling your service or changing to a different service company very expensive.

The reason for a contract is because the price you pay for the phone upfront does not cover AT&T's costs: therefore, you are still paying off the phone after you buy it and AT&T could lose money if you leave your service plan early. This isn't a great reason but it's why the contracts exist.

The best way to avoid the service contract is to buy your iPhone from somewhere other than AT&T. The easiest way and most affordable way to do this is to buy a pre-owned one from someone who is upgrading to a more recent model of the phone. Often you can find some great deals on Craiglist. When you bring your own phone to AT&T, you will be able to get iPhone service without committing to a long term contract which saves you a lot of flexibility. Though you may not have the latest and greatest phone, you won't be subject to a restrictive contract. You can look into buying the newest phone outside of AT&T but in general the premium you pay for the newest phone is approximately the same cost as breaking your contract with AT&T so the choice is generally a wash.