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Why all new phones come with the contract (agreement) but not available in pay as you go?

Question by rajz92: Why all new phones come with the contract (agreement) but not available in pay as you go?
For example, I’m teenager, i got no credit card to sign the contract, but i really want to get iPhone 3G, i don’t care how much they cost but why they don’t do on pay as you go? You know it not fair on us…

Best answer:

Answer by sakazekillaz
You can get the iphone 3G when AT&T/Apple sell it without contract in the near future. They announced that prices will be $ 599 for 8GB and $ 699 for 16GB.

Be aware that you will be paying a much higher price than contract customer since you are not under a 2 year contract that requires data service for the iphone 3G. Since the provider is not making much or at least guaranteed to make much on you on a pay as you go plan (you can leave when you like), they have to get the profit where they can – when you purchase the phone.

Contract customers will ‘enjoy’ the $ 199/$ 299 pricing since the provider will ‘enjoy’ collecting a minimum of $ 80 per month over 2 years for the required voice/data service of the iphone 3G. This is calculated from the minimum voice plan of $ 39.99 plus $ 30 data plan & fees/surcharges/taxes. Obviously, more options will add to that monthly bill and can exceed $ 100.

The best way to go about this is determined on how long you can wait for the iphone 3G to be sold contract-free thru AT&T/Apple stores. Go get a pay as you go phone first.

If you can’t wait, go to ebay, craigslist, etc to purchase them without contract, pay someone to unlock/jailbreak/activate the phone (i assume to be able to use on pay as you go). The prices are volatile on these sites, I’ve seen 8GB iphone 3G go for as low as $ 650 and as high as $ 900.

If you can wait, go to AT&T/Apple store and purchase the contract-free iphone 3G in the near future. It will still need to be activated so probably needs an unlock/jailbreak/activation service. Your prices are already set here aside from the ‘extra’ services needed – $ 599 for 8GB and $ 699 for 16GB.

Hope that helps.

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