Economics @ ITT

T-Mobile Breaks Free of Cellphone Contracts and Penalties

Posted in economics by ittecon on April 5, 2013

When you buy a cellphone — an iPhone or Android phone, let’s say — you pay $200. Now, the real price for that sophisticated piece of electronics is around $600. But Verizon, AT&T and Sprint are very thoughtful. They subsidize the phone. Your $200 is a down payment. You pay off the remaining $400 over the course of your two-year contract.

It’s just like buying a house or a car: you put some cash down and pay the rest in installments. Right?

via T-Mobile Breaks Free of Cellphone Contracts and Penalties – NYTimes.com.

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