> If consumers instead say "yes" and buy the iPhone with the two-year
>> contract, then it will only be a matter of time before all handset
>> subsidies disappear and all cell phone users have to pay both the
>> full cost of their handsets and still be locked into multiple-year
>> contacts. Those who purchase iPhones under the current arrangement
>> may very well be sealing that fate for all cell phone users.
>> Read more ...formatting link
> Somehow, I don't think that will work. If future cellular units are
> sold at full price, there will be all kinds of retailers jumping in to
> cut the price. The word will get around to tell the greedy wireless
> companies, "Sign me up month to month and sell me the Motorola Jacko
> 899 for $249.99 or I will take my business elsewhere."
> Paying market price for the unit will also cause consumers to hold
> onto them longer, thus upsetting the entire manufacturer/wireless
> enterprise sweetheart deal.
> Also, those whose contracts have already expired (I am one of those)
> are in a much, much stronger position to never sign a contract again
> if the units are sold at market price.
Not having a contract could also backfire, I have Sprint and have had them for some years; no problems at all. I bought a handset on eBay for a lot less then even the price with a 2 year contract, and turned it up no problem; my contract expired and I just continued as I had been with the price and services I had, then I was notified that unless I went back to a contract I could wind up paying more for service, less minutes and having to pay full price data. I looked around, and went back to the contact with them, at less then I was paying and for the same features, since I was happy I had no problem, also I was able to get a rebate on the phone I had bought on eBay that amounted to twice what I had paid.
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