Historically, carriers like Verizon and AT&T used "subsidized" contracts where a $600 phone cost $199 upfront in exchange for a locked-in two-year plan. Today, this has evolved into . Under this model, the full price of the phone is split over 24 or 36 months at 0% APR.
: Retailers and carriers profit because the long-term service fees far outweigh the initial discount given on the hardware. best buy contract phones
: To get the best equipment deals, carriers often require you to be on their most expensive "Unlimited" data plans. best buy contract phones
While a "contract" or installment plan removes the "hefty upfront cost," it essentially acts as a loan. best buy contract phones