Gentlmen (and Ladies),

We're in the best economical climate right now. Gamers are willing to spend $60 on unfinished games, movies are making record breaking profits, and Apple/Google still own the majority of the world.

Sadly, it came to my attention in another thread that the majority of Americans don't buy phones unlock but rather fall for the bait of paying just 199.99 USD for a phone. Let's do some basic math by fellow Americans:

iPhone 5 - $199.99 ($649.99 unlocked) with $70 monthly plan ($30-whatever you want unlocked).

Let's say Sob Baget buys a new iPhone 5 and is from the elitist NYC. He pays for the locked version and is tied in for 2 years. At the end of the day, Sob Baget will spend:

$1880 at a minimum, including the price of the phone.

Now let's say Pandy Richford buys the iPhone 5 unlocked and goes to get an unlimited data plan with unlimited minutes and talk time for $30. Yes Pandy spends the upcost of $649.99 but his monthly bills (which he can cancel any time) is only $30 a month. His grand total for 2 years will be:

$1370 at a minimum. Making for an extra $510 for Pandy. Think about what you could do with an extra 255 dollars a year.

So, I'm curious as to why most of you buy phones on contract when basic math tells you flat out you're being screwed over. Unlimited data? Guess what almost all non-contracted services have unlimited tier that's much cheaper.

The carriers try harder to sell phones tied to contracts because money.

But you have full power to just buy it unlock at any time. Shit, you can even go straight to Apple, Google, or other handset makers and just buy it from them.

Mostly because I want to show off how much money I have. I'll pay for the most expensive contract and then not use the phone at all. Bitches love it when you throw away money.

Because of you don't have a contract, you can take your business elsewhere, making it seem like you're getting a better deal by signing up draw in customers.

Because you need a contract anyways and Spending $600 up front isn't a really appealing notion to most people.

I never buy phones on a contract... my current phone is old and sucks... :)

Because most people don't have $700 lying around in their back pocket to spend on a phone. But people do have $70 a month to spend on a phone.

If you know that you can do that and make an effort to do so.

@mattyftm: But you know every summer a new "next-gen" phone is coming. You have a full year to set aside funds. And you're in the UK, aren't your phones all unlocked anyway?

Wait...you can get unlimited data + minutes for $30?

Because I don't have $600-$700 to spend all at once (especially on a phone) I would rather be able to play less upfront even if that means paying more over time.

I bought a Lumia 920 for $500, got a sim card (Prepaid), put $20 for phone (I hate talking on the phone, this way i limit myself) im always near internet so i use WiFi all around me ,using messaging systems and browsing the web. No contracts early termination shit.

The same reason anyone buys anything on credit, I'd assume. It's cheaper to buy your car in cash all at once... but not everybody has the petty cash.

T-Mobile has unlimited data/text for unlocked phones for 30 a month at 4g (including LTE). Only downside is they give you 100 minutes but everyone is smart enough to use Skype or if you're on Android, Google Voice gives you free talk time via VOIP.

@toowalrus: But phones are a given and not that much. People are willing to buy iPads and other tablets at full cost, so what's the problem with a phone?

People who buy iPads every year can easily afford an unlocked phone.

Ah, I see. I'm from Canada and (as far as I could tell) there's only one carrier that provides unlimited data at $30 (Wind Mobile) and they have a really shoddy network.

Most people don't have the financial foresight. And most of our phones are locked into a contract, too.

I'm guessing it's because most people simply don't have that kind of money to spend, whereas spending (in your scenario) $70 a month seems far more accessible because they have at least that figure to spend on a monthly basis.

@mattyftm: I thought you guys in the EU had laws for this shit, and unlocked phones are the common place. The whole having a USB adapters for all iPhones sold in Europe, making sure all phones are unlocked, and same network.

That seems like a great deal. $30 a month for 100 minutes when you can get around having to use those minutes is really enticing. I'm looking at the plan now.

YOU ASKED 'WHY DO YOU' NOT 'WHY DO PEOPLE WHO BUY IPADS EVERY YEAR'

It's acceptable cost. people pay the extra $500 over the two years for the convenience of not having to pay an extra $500 the day they buy their phone. At least it's a transparent business practice, everyone I know of is aware of unlocked phones and month to month plans, they choose to buy into the contracts. People love convenience.