Last updated September 15th, 2013 at 10:03 pm
You may not be one of those people that keep changing their mobile phones and that is the main reason why you may not be thinking to buy a new smartphone once your contract expires with your current carrier right? Well, you haven’t given it a though then you need to reconsider your thinking and make a different decision. According to consumer reports, even if you don’t want to, it is worth spending $100 to $200 on a phone.
The main reason why you should be ready to make a purchase is that, the old model will soon become outdated and it will not support latest features at all. This is not just about the technology but about the price as well. Let say that you want to purchase a smartphone that cost around $400 but if you buy it under a contract with some carrier, you can get it for $200 as well.
As far as the remaining amount is concerned, you pay it back to your carrier on monthly basis along with your mobile bill. That is the main reason why data carriers have early termination fee of $300 so you don’t get out of contract before time. However, the more you use your phone, the less the termination fee becomes.
So, if you end your contract before time, not only that you have to pay an early termination fee but you also have to pay the remaining price of that smartphone too. This becomes an expensive trade so instead of bailing out without getting anything of value, why don’t you use that money to buy a new handset that is worth your money?
Not only from economic point of view, you should go and buy a new smartphone but if we look at this issue from technological point of view, we reach to the same conclusion again. After a few months when you have purchased a smartphones, it starts getting outdated. In a year, there will be a newer version of same smartphone available in the market and that is the main reason why you should think about upgrading your phone instead of dumping and paying high fee for your contract.
“Operating systems and the applications that run on them are being updated constantly and the hardware on your phone may not be able to keep up,” Gikas explained.
Still, if you cannot wait for your contract to end then get ready to pay some extra price and get a better and faster smartphone for yourself.
Let us consider the two high-end smartphones that are available in market right now. If you want to buy Samsung Galaxy SIII then you will have to pay only $200 upfront while buying it from Verizon. The same handset will cost you around $600 if you want to buy it out of contract. Considering the Apple’s iPhone 5, you pay only $200 to Verizon for buying under contract and to the same company; you will have to pay $650 to buy the same product out of contract.
What do you normally do with you your smartphones? Do you agree with the idea to upgrade a smartphone instead of dumping the contract?